Using Michael Porter's "diamond model", based on regional development characteristics, we conduct analysis of the competitiveness of processing industry cluster of livestock products in Inner Mongolia from six aspects (the factor conditions, demand conditions, corporate strategy, structure and competition, related and supporting industries, government and opportunities). And we put forward the following rational recommendations for improving the competitiveness of processing industry cluster of livestock products in Inner Mongolia: (i) The government should increase capital input, focus on supporting processing industry of livestock products, and give play to the guidance and aggregation effect of financial funds; (ii) In terms of enterprises, it is necessary to vigorously develop leading enterprises, to give full play to the cluster effect of the leading enterprises.