Abstract: Economic optimization of biomass power generation in China was focused on．It systematically analyzed industry's current status and major economic constraints across four dimensions: fuel supply chain, technological innovation, policy regulation, and market mechanisms, while exploring optimization pathways．A combination of literature review and case analysis was used to examine China's resource endowment, economic benefits, and policy support for power generation from biomass, with an emphasis on analyzing impacts of fuel supply chain management, high costs, delayed returns, technological bottlenecks, and policy implementation deficiencies on economic performance．Research findings indicated that high fuel costs of collection and transportation, significant equipment investment, and inconsistent policy implementation were core factors restricting economic viability of power generation from biomass．Fuel supply chain optimization would reduce logistics costs and improve resource utilization; technological innovation would enhance energy conversion efficiency and strengthen market competitiveness; policy adjustments should dynamically optimize electricity price subsidies, improve carbon trading market, and expand green finance channels to enhance industry sustainability．Through supply chain optimization, large-scale development, policy incentives, and market mechanism improvements, power generation from biomass economic feasibility could be effectively enhanced．This would drive industry's trend toward high efficiency, low carbon, and intelligent development, contributing to China's energy structure transition and achievement of its dual carbon goals．