Abstract: It is well-known that jade comes from Yunnan Province.Yunnan Province has the closest relationship with the most important jade regions in the world.Its jewelry industry, especially the jade industry, has an unique position in China.Based on development history and current situation of jewelry industry in Yunnan Province, this paper discusses the driving factors and existing problems of sustainable development of Yunnan Province jewelry industry, and puts forward a policy suggestion.Jewelry industry in Yunnan Province has a long history experiencing silence, recovery and revitalization of spiral development process.At present, jade industry in Yunnan Province has reached a considerable market share and has the foundation to build an even bigger culture industry based on jewelry.Comparing with other provinces, we believed that Yunnan Province has obvious geographical advantages as well as unique history and humanities environment, and preferential industrial policies, which are essential driving forces behind the sustainable development of jewelry industry in Yunnan Province.Combined with the opportunities brought by the national strategic adjustment and the trend of convergent development of financing, tourism, creative cultural industry and other industries, Yunnan Province has more potential to become an important growth center for jewelry industry in western China.Less variety of gemstones and market structures, serious brain drain, and, most importantly, no endogenous industrial cluster, poses threats to the advantage of jewelry industry in Yunnan Province and its sustainable development.To get the driving force of sustainable development, Yunnan Province needs to seize the opportunity in strategic regional movement, enrich its market structure, enhance industrial clustering ability of the jade industry, further develop high-end professional talents, promote further integration of jewelry industry, tourism, financing, cultural creative industry and other industries, form endogenous industrial cluster rooted in local area, and build up a complete jewelry industry chain.