Abstract: The paper elaborates the forestry industrial evolution process of Inner Mongolia state-owned forest areas in the northeast from the two respects of the industries and inner-industries structure. And the paper makes recognition of the leading industry using location quotient theory. The results show that forestry industrial structure is gradually reasonable, but it still needs further optimization; wood products manufacturing and forestry tourism and leisure service industry should be cultivated as the leading industries. The logging industry and timber wood processing industry should be supported and guided as the recessing industry. The paper puts forward the countermeasures and suggestions to optimize the forestry industrial structure from the cultivation and utilization of forest resources, increasing investment in science and technology, and promote scientific and technological innovation, improve forestry property system.