Abstract: Foods for special medical purpose (FSMP) is specially processed for patients with specific nutritional demand. FSMP is critical for the prevention and treatment of diseases. Industry of FSMP receives increasing attention from the government since its initiation in China. The current status, opportunities and challenges confronted by Chinese FSMP industry were introduced in this article. Some pertinent policy recommendations were put forward to promote the scientific and technological innovation of FSMP industry, which would be beneficial for boosting the supply-side structural reform of the food industry and improve the national nutrition and health.