The supernova SN 1978K has been noted for its lack of emission lines broade
r than a few thousand kilometers per second since its discovery in 1990. Mo
deling of the radio spectrum of the peculiar SN 1978K indicates the existen
ce of H II absorption along the line of sight. To determine the nature of t
his absorbing region, we have obtained a high-dispersion spectrum of SN 197
8K at the wavelength range 6530-6610 Angstrom. The spectrum shows not only
the moderately broad H alpha emission of the supernova ejecta but also narr
ow nebular H alpha and [N II] emission. The high [N II] lambda 6583/H alpha
ratio, 0.8-1.3, suggests that this radio-absorbing region is a stellar eje
cta nebula. The expansion velocity and emission measure of the nebula are c
onsistent with those seen in ejecta nebulae of luminous blue variables. Pre
vious low-dispersion spectra have detected a strong [N II] lambda 5755 line
, indicating an electron density of (3-12) x 10(5) cm(-3). We argue that th
is stellar ejecta nebula is probably part of the preshock dense circumstell
ar envelope of SN 1978K, We further suggest that SN 1997ab may represent a
young version of SN 1978K.