Abstract: Development of industrial clusters has become a significant economic phenomenon in the economic development worldwide. The industrial cluster development of flue-cured tobacco is not only a developmental direction of modern tobacco industry, but also an important way to competitiveness promotion of flue-cured tobacco industry. This paper analyzed advantages and disadvantages of flue-cured tobacco industry cluster in Henan province using the “diamond model” from production factors, demand conditions, related and supporting industries, corporate strategy, structure and interbank competition, and opportunity and government; meanwhile, several constructive suggestions were proposed, i.e. increasing tobacco leaf production infrastructure construction, enhancing tobacco leaf production organization levels, and accelerating implementation of tobacco technological innovation projects, implementing the leading tobacco manufacturing industry-driven strategies, and improving the policy support system of tobacco leaf production. These recommendations will help to promote flue-cured tobacco industrial cluster development in Henan Province and to enhance the competitiveness of the whole industrial cluster.