Abstract: Forestry development has gone through two stages，which are timber production stage and ecological or environmental forestry stage. With the change of nature and social environment, these two stages can not accurately illustrate the regulations of forestry development. Multifunctional forestry should be established in China, which is decided by conditions of resource, industry, domestic and international environment. The multifunctional forestry should base on sustainable development, change from single function to multifunction, and develop diverse benefits. Social benefit, economic benefit and ecological benefit should be reflected in forestry development.