Abstract: In order to improve the performance of the relevant system of the electro-hydraulic proportional position control system of a steel company, the mathematical model of the electro-hydraulic proportional position control system was first established by using numerical calculation and analysis method, and the model was constructed by Simulink software. Through analysis, the amplitude margin of the system was 25 dB and the phase margin was 89.6°. It is found that the accuracy and stability of the system have met the basic requirements, but through the step response curve of the system, it is found that the rise time is 4.26 s and the adjustment time is 5.83 s, and the rapidity of the system response does not meet the requirements. In order to further improve the performance of the system, the PID controller with simple structure and wide application range is selected in this paper. By adding PID control and constantly modifying PID controller parameters, the performance of the system is optimized. The final optimized system amplitude margin is 5.18 dB, and the phase margin is 90°. The rise time is 0.236 s, the adjustment time is 0.435 s, the system in maintaining good accuracy and stability on the basis of speed has been improved, has fully met the requirements of industrial production. Finally, the effect of the effective area of the hydraulic cylinder on the PID control performance is discussed. When the effective area of the hydraulic cylinder is =0.15~0.20, the system performance still has good applicability; when it is less than 0.15, severe vibration will occur, and when it is greater than 0.20, the response time will be greatly increased. This analysis provides some reference for the subsequent scholars to adjust the PID parameters.