Technological progress is one of the important factors which can promote economic total amount or industrial economy to go up.In this paper,the characteristics of coal industry and its technological progress as well as the effects of technological progress to the economic growth of coal industry are analyzed.By use of production function and the statistical data of coal industry in Shanxi province during 1985 to 2005 year,the coefficient of technological progress λ in function of increase of output value was calculated and it is 0.144%,and the calculated average contribution rate and average contribution share respectively is 0.8922 and 42.72%,these showed that the contribution of technological progress to the economic growth of coal industry is greater.