(1)Background--In Yunnan Province, the poverty problem is serious, and the available poverty alleviation resources are limited. The under-forest industry plays an important role in achieving the goal of poverty alleviation. However, there are few researches on the poverty alleviation effect of under-forest industry. (2)Methods--In this paper, the semi-structured interview method is used to discuss with relevant cadres, who are the forestry department (bureau), Poverty Alleviation Office, village committee, etc. of Sanhe Village in Lushui City, so as to make clear the development of under-forest industry and the situation of poverty alleviation and development in Sanhe Village. In addition, in August 2018, the members of the investigation team went to Sanhe Village, Lushui city to carry out field investigation, and a total of 150 questionnaires were issued and 139 were recovered, with an effective rate of 92. 7%. (3)Results--First of all, forest farmers in Sanhe Village have a high enthusiasm to develop the undergrowth industry, 79. 6% are willing to expand the scale of the forest industry, and 56. 1% are optimistic about the development of the forest industry, but in the process of developing the forest industry, 51. 6% of them would encounter economic and technological difficulties. Secondly, the farmers are familiar with the cooperative, and most of them have joined the cooperative. 60. 8% of the farmers enjoy the technology, production and loan services provided, while 57. 8% of the farmers want the cooperative to provide technical guidance, financial support and other services. However, 55. 1% of forest farmers did not understand the entry of enterprises, and the business model of enterprise cooperation was relatively single, and the help mainly focused on the market and technology. In addition, 77. 6% of the forest farmers are willing to accept the relevant skills training, and 73. 5% of the forest farmers are satisfied with the effect of the skills training, but 40. 8% of the forest farmers have not participated in all kinds of skills training, the degree of personal attention is an important factor influencing farmers' active participation in training. Finally, The development of the forest industry has effectively promoted the economic development of the poor areas, improved the infrastructure construction of the forest area, and improved the ecological environment of Sanhe Village. (4)Conclusions and Discussions--The forest farmers in Sanhe Village are more active in the development of forest economy, but they'd like to encounter difficulties in capital and technology. In addition, the proportion of forest farmers participating in cooperatives is high, and cooperatives provide services, but the rate of enterprises settling in is low. Furthermore, forest farmers are willing to accept skills training, and they are more satisfied with the training effect, and they tend to accept technical and management training. In Sanhe Village, remarkable results have been achieved in poverty alleviation by forest industry, which has effectively promoted the economic development of poverty-stricken areas. Based on the problems encountered in the development of forest industry in Sanhe Village and the actual situation of poverty alleviation and development, the following suggestions are put forward: First, the government should scientific planning and active guidance. Second, the enterprises or cooperatives should strengthen the publicity and provide skills training. Third, farmers should change the thinking of forest farmers and take the initiative to develop under-forest industry. [ABSTRACT FROM AUTHOR]