Abstract: The folk mediation system of Yi people is a traditional mechanism of folk disputes in Yi areas, which is a kind of local dispute resolution resources with clear ethnic characteristics. While affirming the positive role that Yi folk mediation system plays in the settlement of disputes, one should be aware soberly of the problems such mechanism bears. On the basis of analyzing the concept and characteristics of Yi folk mediation system, this paper points out the difficulties faced by Yi folk mediation system, and then, puts forward the concrete modernization path of Yi folk mediation system, hoping to promote the modernization of the rule of law in the Yi areas, and serve better the prosperity and stability of the Yi areas.