Abstract: The constantly expanding scale, the consistently growing standardization base of dominant varieties and the continuously upgrading specializationlevelhavelaid a solid foundation for improving the core competitiveness and promoting the high-quality development of Yunnan traditional Chinese medicine industry. At the same time, there are some problems in Yunnan traditional Chinese medicine industry such as disorderly provenance, lack of standards, insufficient development of planting bases and primary processing, weak leading enterprises and imperfect industrial chain. The development level of Yunnan traditional Chinese medicine industry can be improved by cultivating and operating entities to support the large Chinese medicine planters with moderate scale, building a seed and seedling standardization system, production operating system as well as management system. Build standardized planting bases and high-standard demonstration bases, cultivate and strengthen leading enterprises of Chinese medicinal materials, accelerate the construction of characteristic industrial clusters, and lead the high-quality development of the Chinese medicinal materials industry.