This paper analyzes the function position, industrial category, attributes and supply-side of geological prospecting, which is a basic servicing industry by supplying geological prospecting products or technologies for economy, society, ecology and human's living. There are some issues such as surplus production capacity, insufficient geological information products, unbalanced geological prospecting product supplydemand, improper suppliers of geological prospecting products, sole geological prospecting service products due to scant development. This paper gives suggestions from four aspects on transformation and upgrade of geological prospecting under supply-side structural reform, expanding effective supply, decomposing surplus production capacity, fostering new drive and activating market driving, and presents strategies for geological prospecting in integrating “governance-production-study-research” and cultivating talents, offering revelation for transformation and upgrade of Chinas geological prospecting industry