Abstract: It was proved that there were long history over one thousand years for cultivation of edible fungi such as Xianggu mushroom(Lentinus edodes) in China. And now edible fungi production has become a leading industry of rural economic development in mountainous regions. It is very important to sustain the production of broad leaved wood inhabiting edible fungi to cultivate largely mushroom wood plantation. This paper is a review about the advances in mushroom wood species selection, oriented cultivation of mushroom wood plantation by promoting natural regeneration, high yield cultivation and establishment of seed stand of main mushroom wood species in south China. In view of research status and problems in cultivation of mushroom wood plantation, the paper put forward the corresponding technique countermeasures and future research emphasis, including selection breeding, propagation and seedling culture of main mushroom wood species, planting under Chinese fir and masson pine forest, interplanting between mushroom wood species, sprout regeneration of mushroom wood plantation, etc.