From name, historic stories, reputation, traffic and location factors, and natural factors as production and processing, water, raw material and yeast, this paper firstly analyzes key factors for protection of GI product Xiangshan Spirit. Then, it discusses differences in quality characteristics between Xiangshan Spirit and other rice flavor type spirits. Besides, industrial development of Xiangshan Spirit is analyzed from residues of pesticides, quality of water for making wine, and exclusive use of geographical indication Xiangshan Spirit. Finally, it puts forward following suggestions, including formulating and implementing local standard GI Product Xiangshan Spirit, strengthening quality control over rice raw material, implementing enterprise + base industrial model, and support group enterprises with government as leader.