Abstract: Excessive use of peat may cause some environmental problems. To alleviate the negative effect, an experiment was conducted with the mushroom residue compost to replace peat in Larix principis-rupprechtii containerized transplant production, and the proportion of mushroom residue compost was 0% (T₀, control), 15% (T₁), 18.75% (T₂), 25% (T₃), 37.50% (T₄), 50% (T₅), 56.25% (T₆) and 60% (T₇), respectively. The physical and chemical features of the substrates and its effect on the vegetative growth and nutrient accumulation of L. principis-rupprechtii containerized transplants were studied. The results showed when the proportion of mushroom residue compost in the substrate accounted for 50% or less, there was no significant difference in the transplant height, diameter, and biomass compared with the control, and the nutrient concentration in T₂, T₄, T₅ treatments was significantly higher than in T₀. The pH value was sub-acidic to neutral which was suitable to the transplant growth. When the compost proportion accounted for more than 50%, the pH value was altered to alkali and was not suitable to the transplant growth. When the proportion of mushroom residue compost accounted for 15%, the plant grew best, and the height, diameter, and total biomass got the highest. Therefore, using mushroom residue compost to replace peat in L. principis-rupprechtii containerized transplants cultivation was feasible and the maximum replacement ratio could reach 50%. The high quality transplants could be obtained when the compost replacement ratio was 15%.