As a new-fashioned tourism style, Traditional Chinese Medicine (TCM) health tourism has been going through a more and more rapid development in recent years. The development of TCM health tourism of Shandong Province mainly depends on the unique TCM resources and profound TCM cultures in different regions. The exploitation of TCM health tourism can not only protect the unique TCM resources and inherit TCM culture, but also promote the economic development of the province. Based on the analysis of the related resources, exploitation present conditions and the problems emerged in the development of TCM health tourism in Shandong Province, this article put forward a frame proposal of industry-based, industry-leaded and tourism idea-guided development mode for the TCM health tourism development in Shandong Province, in order to achieve the goals of integrated development between TCM and health tourism in Shandong Province. This will be of quite significant strategies and measurements to the TCM health tourism development in Shandong Province.