Situated in the southwest part of China, Yunnan Province is an undeveloped upland with 15 million people in poverty living mostly in remote and less productive mountainous areas. Most of the individuals in poverty in Yunnan belong to ethnic minorities. Furthermore, high population densities and shortages of arable land in this province have resulted in severe deforestation. Consequently, poverty alleviation is made more difficult by environmental deterioration. The authors review the characteristics of poverty in Yunnan and analyze the main issues and current policies for poverty alleviation in this province. They also put forward some strategies for poverty alleviation in Yunnan. A two-pronged approach is suggested for poverty alleviation in Yunnan: to promote economic development in selected poor localities and to allow migration from poverty areas with little economic potential to areas of higher income