In order to study whether industrial structure upgrade improves the environmental pollution in the east coastal area or not, this paper selects the panel data of China's east coastal area and uses entropy to set up comprehensive evaluation index of environmental pollution, which is applied to study the relation between environmental pollution and industrial structure upgrade via Kuznets curve model. Results show that Shanghai, Tianjin and Hainan have a severe environmental pollution, which need improving. It shows a reverse U shape between environmental pollution and industrial structure upgrade in China's east coast. Currently it is positioning in the right portion, which indicates environment will be improved as industrial structures upgrade. Technical advances and foreign investment are influencing negatively on environment, but positively on foreign trade. This paper presents suggestions that the east coast make appropriate environmental policies, upgrade industrial structure to improve environment, intensify technical innovation, use foreign capital in a better manner and optimize trading structure.