In 2020，China’s online drama industry enters a new stage of growth and quality improvement. Under the policy of cracking down on “drama flooding” and the positive response of the industry，the network drama is becoming more short and high quality，and the integration of TV and network is further deepened. The number of online drama is rising steadily，and the broadcast index is constantly improving. In terms of the content of network drama，the mystery-short drama has become a new trend，IP drama is turn to local adaptation，the theme of “She” has emerged，Hong Kong and Taiwan dramas are gaining popularity，and interactive drama has also gradually attracted attention. In terms of the market characteristics of the audience，the audience group has been further segmented，the enthusiasm of audience’s interaction and rating are not diminished，and the willingness to pay is continuously enhanced. In terms of the industrial operation of online drama，IP adaptation，paying operation，typified theater and industrial production are the four main modes. However，our online drama industry is also facing the dilemma of over-reliance on IP adaptation，insufficient thematic works and low cultural output ability. online drama should follow the principle of “three approaches”，take a road of diversification and quality，create high-quality cultural works，and enhance cultural influence and international communication.