Abstract: Yunnan province is one of the major pepper producing areas in China.Recently，with increase in area of processing peppers，processing pepper industry has developed rapidly in Yunnan province.Development of processing pepper industry and breeding of new processing pepper varieties in Yunnan province were expounded.According to problems existing in processing pepper industry at present，some measures were proposed such as strengthening breeding of new varieties，promoting of new varieties and new technologies，strengthening modernization of processing enterprises and researching of deep processing pepper products to promote development of processing pepper industry in Yunnan province.