Abstract: The development status of giant fungus grass industry in Yan′an of Shaanxi Province was introduced, the introduction and utilization effect of giant fungus grass in this region were analyzed, and the suggestions on development of giant fungus grass industry were put forward, in hoping to provide basis for promoting the progress of industrial poverty alleviation, scaled development of giant fungus grass industry, grain to feed program, featured resources and green and organic food development as well as its industrial chain extension in this region.