China and Australia entered into the free trade agreement in June 2015.This milestone event is of great significance for their bilateral relations and all-round cooperation including in the education sector.Building upon solid literature review and the two authors' personal experience of Australia's educational system，the research conducts an in-depth analysis of features，opportunities and challenges of China-Australia education cooperation especially since the comme-ncement of their bilateral free trade agreement.Brief policy recommendations are also provided.The paper argues that the free trade agreement has become a driving force behind the two countries' fruitful cooperation in education.China has remained Australia's largest market of education export.The number of Australian students studying in China is also growing rapidly under the New Colombo Plan，which becomes a new area of education cooperation.On the other hand，however，challenges emerge in China-Australia education cooperation and need to be addressed to unleash the potential.