Abstract: The application of the Factor Analysis Method to the evaluation of forest natural regeneration was discussed by taking Pinuns densata forest in Shangrila County as an example. A comparison between the density and multifactor analysis methods was made to explore the reasons drawing different evaluation results of forest regeneration by these methods. Contrasted with the traditional evaluation method with only density factor, it was showed that the evaluation on forest regeneration made by multifactor analysis method was more objective, which could get the evaluation more accordant with the production reality, because this method took the information of both density and seedling growth condition into consideration.