Abstract: This study investigated the production situation of Glycyrrhiza uralensis Fisch industry in the northern arid mountainous area of Yuzhong county in Gansu Province.The underlying problem were high seedling cost, local seedling lag, low mechanization level, lack of labor force, licorice processing and backward technology, it was proposed that the development of G.uralensis Fisch in the northern arid mountainous area of yuzhong should strengthen the introduction of new varieties, carry out local seedling, improve the degree of mechanization, give play to the leading role of leading enterprises, improve the deep processing capacity, improve the product brand effect and other suggestions, it provided theoretical guidance for the healthy development of licorice industry in arid mountainous areas of Gansu Province.