Abstract:Based on the topography of "seven parts mountain, two parts water, and one part farmland" and the resource advantage of being the "Medicine Repository of West Hubei", this paper reviews the diversified forest understory economic models currently established in Yichang, including planting, breeding, collection and processing, and forest health care. The forest understory economy in Yichang covers an operating area of 74,000 hectares with a total output value of 6.169 billion yuan, and has fostered distinctive brands such as "Ziqiu Flying Chicken" and "Yichang Gastrodia elata". Addressing persistent challenges—such as insufficient policy support, lagging scale operations, weak technological backing, limited brand influence, and slow market expansion—the paper proposes targeted optimization paths. These include strengthening cross-departmental policy coordination and state-owned enterprise demonstration, innovating financial mechanisms like the "Under-forest Loan", building industry-academia-research collaborative platforms for technology extension and quality traceability, extending deep processing chains to create regional brand clusters, and pioneering integrated models combining "Under-forest Economy + Cultural Tourism + Carbon Sequestration". The study aims to translate resource advantages into industrial competitiveness, providing strategic insights for Yichang’s high-quality development and rural revitalization, while offering a replicable model for green development in comparable regions.