Throughout the development of contemporary music, fusion and transformation has played an important part. In exploring new sound that represents the contemporary era, musical materials from different periods or cultures were often brought together in the composition process, and these materials were combined, transformed, and presented in many different novel ways. For many Asian contemporary composers, one of their main concerns in creating contemporary music is to find an effective way to incorporate traditional musical cultures into their compositions, in order that the Asian cultural identity might be reinforced. During the past few decades, a wide range of approaches were explored: these include synthesizing musical styles, blending of Eastern and Western instrumental timbres, writing program music based on Asian literatures, and realizing Eastern philosophical or aesthetical thoughts by Western ensembles. In using these approaches, composers have not only been reflecting on their own musical tradition, but also opened up new possibilities for their artistic endeavors. This paper aims to examine how fusion and transformation has played an important part in the creative process of Hong Kong contemporary compositions since 1990. Works by composers including Richard Tsang, Wing-wah Chan, Victor Chan and Joshua Chan are used as examples to illustrate how non-western musical elements and culture are incorporated into their compositions, in order to create contemporary music with distinctive Asian flavor.