Abstract: Yunnan is one of the provinces in China with the richest resources of traditional Chinese medicine. Under the backdrop of the “Healthy China” strategy, the unique advantages of traditional Chinese medicine in prevention, treatment and rehabilitation have become increasingly prominent, and the industry of traditional Chinese medicinal materials in Yunnan has entered a golden development period. This article analyzes the current development status of the Chinese medicine materials industry in Yunnan based on multiple dimensions, including policies and regulations, general situation of large varieties of authentic medicinal materials, geographical indication protection, the development of new cosmetic raw materials, Chinese herbal medicine Good Agricultural Practice (GAP) base evaluation, International Organization for Standardization (ISO), and put forward suggestions for the development of the Chinese medicine materials industry in Yunnan province. Through in-depth analysis of these aspects, it provides a reference basis for formulating scientific and reasonable industrial development strategies and promoting the sustainable development of the traditional Chinese medicinal materials industry in Yunnan.