Abstract: Based on analysing the advantages and potentiality of Lentinula edodes industry of South Shanxi, the problems and shortcomings were discussed, including small productive site and lower yield per unit area and quality and non-fluent business and non-perfect service system, etc. Some corresponding development countermeasures and advisable policies were put forward: the understanding on Lentinula edodes industry should be raised, the leadership and management should be improved, the leading businesses and producing bases should be constructed, the perfect service system should be established, the brand strategy should be practiced, the power of scientific research and technical broadcast should be strengthened, the market should be exploited in and out of the world.