Now, Henan's industry is in a situation of fast growth, in order to effectively combat multi-facet pressures coming from financial crisis, growing cost, declining product price , constraining of ecology and environment and promote the competence of enterprise, Henan must speed up the industrial transformation and upgrading. Since traditional industry play an dominant role in Henan's industry structure, it is necessary to conduct a research on the transformation and upgrading of Henan's traditional industry. In this article, after an introduction of the basic situation and the promotion policy of Henan's traditional industry transformation and upgrading, analysis the internal and external environment. This paper propose extending the industrial chain, promoting industry clustering, manufacturing servitization and so on to speed up transformation and upgrading of traditional industries in Henan province. <<