Abstract: Miscanthus lutarioriparius was the main raw material of the paper industry in Lake Dongting area. However, with the withdrawal of papermaking enterprises after 2018, the green utilization of Miscanthus lutarioriparius(M. lutarioriparius)has become a hot topic. This paper summarized the development status and the main problems of the green utilization industry of M. lutarioriparius, and provided suggestion for the industrialization development of this industry. Based on the results of field investigation and the planting and abandoned harvest area from Hunan Aerospace Science and Technology co., LTD. by remote sensing technology, this paper analysis the status quoth, existing problems and development advantages of this industry.M. lutarioriparius industries of shoots, mushrooms, boards and building insulation materials were the typical green utilization industries in Lake Dongting area. The industrial development was divided into germination stage and scale development stage from the beginning of 2018. There are some issues existed on Hunan M. lutarioriparius green utilization industry development,such as the small proportion of the large-scale production enterprises and the low overall operation efficiency, the imperfection of supporting regulations, policies and market mechanism, lack of high technology and equipment, the imperfection of the industry chain and lack of branding. This research contributes to the proposal of optimization of industrial structure basing on ecological and economic benefits, rational planning and layout, establishment of supporting policies to optimize the business environment,encouraging the industrial clusters and integration.