Nowadays developing modern service industry is important for industry conversion of shanxi province. This paper makes an empirical research on the structure and the competitiveness of modern service industry in Shanxi province using shift-share method. The growth of modern service industry in Shanxi province laggs behind the level of whole country. Furthermore both the structure and the competitiveness of modern service industry in Shanxi province are unreasonable. So it is urgent to raise awareness, to adjust structure and to improve the competitiveness of modern service industry for accelerating the development of Shanxi’s modern service industry.