Abstract: With the advantage of the rich resources of Dushan Yu，Nanyang jade carving industry has been developing rapidly and vigorously in recent years.Through a study on the development of the Nanyang jade carving industrial clusters in Henan Province，this paper aims to reveal the formation and development mechanisms of the jade carving industry in the area.The development process of Nanyang jade carving industry could be divided into two main stages，either of which has its own leading factors，development patterns and power.During the stage when the jade carving industry was taking shape，the leading factors were resource advantage and government policies as well as the successful local businessmen.At that time the development patterns were imitation and technology diffusion，and the development power were undergoing effect and information advantage.During the stage when the jade carving industry was developing rapidly，the leading factors were the reasonable application of Dushan Yu and market disciplines and external effects of the clusters.Then the development patterns were the rapid gathering of the industries those relevant to the clusters，and the development power were technological innovation.