Objective/Meaning The green agricultural industrial chain is an important support for the rural revitalization and green development. Clarifying its formation mechanism is helpful to construct a complete green agricultural industrial chain and realize its value extension, so as to improve the level of agricultural modernization and green development.

Methods/Procedures Based on the typical cases of green agriculture development in China, the formation mechanism of green agricultural industrial chain was analyzed by using the research method of grounded theory, and then the function realization of green agricultural industrial chain was discussed.

Results/Conclusions It was found that the formation of the green agricultural industrial chain was affected by the resource endowment, scientific and technological innovation, environmental regulations and benefit coupling mechanism. The resource endowment determined the development of the industrial chain and was the basis for the vertical extension of the industrial chain. The scientific and technological innovation provided some support for the horizontal expansion of the industrial chain. The environmental regulations has played the prompting and restricting role. The benefit coupling mechanism has played a linking role. As a result, the green agricultural industrial chain has achieved the social, economic and ecological benefits.