Drought is the first limiting factor threatening the sustainable development of flax production in southern Ningxia Hui Autonomous Regivn. In recent years, The technology of mulched hole planting is used on dryland flax, and its yield-increase mechanism and benefit were explored. The results showed that, mulched hole planting could improv e soil temperature, conserve soil moisture, and promote full release and efficient use of soil rapidly-avai lable nutrients. Hole planting could enhance the co-force of breaking th rough the soil off laxseed, so the rate of germination was as high as 79.4%～96.2%, and yield was raised by 37.9%～46. 2%. Meanwhile,w ater-saving supplied irrigation was conducted in the key development stage of flax f rom the latter stage of clumping to the initial stage of budding. The results indicated that the yield could be increased by 30%～44% with 300～450 m³ /hm² irrigation, which is 8%～14.9% greater than the contrast. Hence, this new plantingtechnology should be extensively used on flax in arid and semi-arid areas.