Abstract: Perennial forage had many merits such as reproducible ability, high yield, wild distribution, low price, high cellulose content, etc. Therefore, using perennial forage as feedstock of producing ethanol could solve the contradiction between energy production and food security, but also took ecological benefits such as controlling soil erosion, reducing pesticide and fertilizer pollution, reducing CO2 emission. Compared with grain crops, the use of perennial forage could decrease the ethanol production cost and brought good economic benefit with the development of technology. This paper discussed the status of producing bioethanol by perennial forage, and analyzed its ecological advantage and economic value. Also, some main perennial forage as feedstock of producing ethanol were introduced, and it provided a scientific basis for developing energy grassland industry with perennial forage.