Abstract: Forest towns originate from characteristic towns and are a special form of characteristic towns. The state vigorously promotes the building of ecological civilization, and has issued a series of policies from the central government to the local governments to actively carry out the construction of forest towns. These policies reflect the sustainability, ecology, characteristics and coordination of the construction path of forest towns. However, the actual construction path of some domestic forest towns deviates from the policy connotation. This paper selected the Wugong Forest Town in Xianyang City as a case, and explored the problems existing in the construction path of the town from the perspectives of forest industry, government behavior, town culture and residents’ participation. Based on this, this paper puts forward that, during the construction of forest town, we should insist on adapting measures to local conditions and build a multi-industry mode dominated by forest resources; adhere to ecological protection and practice the theory of “two mountains”; adhere to the cultural confidence and activate the town forest culture; adhere to the policy guidance, create the operation and management mode with the participation of multiple subjects, and promote the forest towns to return to the path of sustainable development.