Abstract: The paper summarized the present status of yellow phosphorus industry in China，including the industrial general situation，outstanding features，phosphorite and power consumption，apparent consumption of yellow phosphorus，′Three-waste′treatment and comprehensive utilization as well as the present situation after the structural adjustment of yellow phosphorus industry in Yunnan province.The development prospect of China′s yellow phosphorus industry was pointed out as：yellow phosphorus products are irreplaceable，but the demand will drop off gradually；the production of yellow phosphorus has good function of′energy storage and peak load shifting′to water and power industries，and this is also the important condition of the existence of yellow phosphorus industry；the position of Chinese yellow phosphorus industry in the world will not be changed and no fundamental changes will appear on the share of China′s output；the Chinese yellow phosphorus industry should take a technical route called′putting lump ore into furnace′，which was decided by the features of Chinese phosphorite resources；reasonable use of phosphorite，′energy saving and emission reduction′，comprehensive utilization，fine and deep processing are the fundamental for sustainable development of Chinese yellow phosphorus industry.It also predicted that the consumption of yellow phosphorus in the year of 2020 will concentrate on the food，medical and electronic grade phosphoric acids，phosphates，phosphides and its derivatives.At last，several suggestions for the development of Chinese yellow phosphorus industry were put forward.