Abstract: By analyzing the features of the reverse logistics in rare earth industry, summarizing the distribution of the resources in China and exploring the scheme of reverse logistics network, the function of establishing the reverse logistics network was put forward according to the recycling procedures of rare earth. The key point was to construct the network system from two aspects -the selection of the rare earth reverse logistics equipment and the design of the reverse logistics level and reduce the pollution and damage to the natural environment caused by radiation and so on. At the same time, optimum use of rare earth resource should be made to accelerate the development of reverse logistics in rare earth industry and maintain the sustainable utilization of rare earth.