The status of impoverished population and economic development in Qinling-Bashan Mountainous area, Shaanxi is introduced based on the brief account of its general situation. Firstly, there are a large proportion of rural people and great outflow of population; a considerable proportion of the weak, the disabled, the sick and the dementia and low population quality; weak capacity of the economy to generate profit on its own and declining trend of financial self-sufficiency rate. taking into account that Qinling-Bashan Mountainous area is poorest area with the largest impoverished population and the most complex structure of poverty, the impact of the status of the poor population in Qinling-Bashan Mountainous area on its economy is discussed: the first one is backward ecological concept and serious damage to ecological environment; outflow of excellent talents and a serious shortage of labor; the industrial structure is irrational and the resources advantage can not be transformed into economic advantage. Some corresponding measures and suggestions are proposed: the first one to build new small town so as to lessen the loss of population; the second one is to provide preferential policies so as to attract and retain qualified person; the third one to develop education and establish the concept of ecological civilization; the fourth one is to unblock the channels of information transmission and restructure the industry.