Abstract: Through in-depth investigation of the development status and existing problems of forest grass seedling industry in Dehong Prefecture, Yunnan Province in the past three years, this paper analyzed the production status and market demand and supply of forest grass seedlings in Dehong Prefecture. Then it further analyzed the development advantages, opportunities, potentials and existing problems of Dehong forest grass seedling industry. Aiming at the bottleneck problems such as late start, weak development foundation, low overall quality of seedlings, weak seedling team strength, weak seedling market supervision and service capacity, it put forward the countermeasures and specific measures for the development of forest and grass industry in Dehong Prefecture in the cultivation of leading seedling enterprises, the construction of seedling trading market platform, the construction of seedling cultivation infrastructure, and the capacity building of seedling market supervision.