[Objective] The developing status and issues of ecological industry in mountainous areas of Southern Ningxia Hui Autonomous Region were analyzed, and the developing strategies were proposed in order to provide references for development of ecological industry, and to support regional ecological protection and high-quality development. [Methods] Through the surveys given to local famers and corporate employees, discussions with many experts and government administrative officers, as well as access to relevant literatures, the status of ecological industry was summarized, existing issues were analyzed, and developing strategies were also discussed. [Results] In recent years, with the development of ecological restoration, five major ecological industries have been established, including dryland grain production, livestock, fruit, vegetables, and Chinese herbal medicine. These ecological industries have shown strong local characteristics and a trend for rapid development. Livestock and vegetable production showed higher economic benefits and have the potential for greatly improving farmers’ income. These two sectors have good prospects and opportunities for future development and promotion. However, there are still some issues need to be solved, such as improving coordination between ecological restoration and the ecological industry, reducing mismatches between ecological resources and the layouts of ecological industries, failures in implementing key technologies, and insufficient scientific and technological support. [Conclusion] In the future, this region should strengthen the integrated design of ecological restoration and ecological industry, develop new ecological industries, explore the utilization of ecological resources, strengthen research on key technologies, and strengthen support for scientific researches and development of a technically capable workforce.