Abstract: Based on the panel data of A-share listed forestry enterprises from 2012 to 2021,this paper empirically analyzed the nonlinear relationship between diversified operation and the performance of forestry listed enterprises by using capital structure as the threshold variable. The results showed that under different capital structure levels,diversification had different effects on the performance of listed forestry enterprises in China,and the capital structure level of diversification on the performance of listed forestry enterprises was 50.23%. The impact of diversification on enterprise performance was positive in different threshold intervals,but the coefficient values were quite different. Therefore,forestry enterprises reasonably carry out diversified business based on the study and judgment of their own capital structure in order to improve performance.