The vegetation in upper reaches of Lijiang river could be divided into five elementary types, such as coniferous forest, broadleaf forest, mao bamboo forest, shrub wood and herb. The hydrological characteristics and functions of different vegetation types are variable, and it differs mainly in reallocation of precipitation, equilibrium of water and hydrological comprehensive adjusting ability. The forest adjusting function on rivers runoff alters as the forest hydrological function changing. On the basis of estimating the hydrological function of different vegetation types, it could be concluded that broadleaf forest is the best vegetation type of sub tropical hydrological function. The ecological rehabilitation strategies are suggested according to the problem of Lijiang river faced and forest vegetation function condition of Lijiang river upper reaches.