Abstract: The reform of collective forest right has entered into a deepening phase. Ensuring the collective forest right circulates orderly and effectively is of vital importance in this period. Mortgage of collective forest right is the core to solve the problem of capital shortage in forestry development. This paper analyzes the current situation of mortgage of collective forest right, and points out that there are legal barriers such as nominal status quo of subject of collective forest right, restriction on mortgage property, barrier of assessment of mortgage property, and deficiency of disposing right in collective forest right. The paper proposes that it is necessary to bestow the subject of collective forest right as the independent qualification of legal person. The scope of mortgaged property should be broadened, and forestry insurance system should be established based on the complement of forest policy-related insurance and commercial insurance.