With the progress of the national leisure idea in China, leisure industry has become an increasingly important component of urban economy. This paper interprets the concept of urban leisure industry and key factors, and discusses its promotion effect to economy. The status and structure characteristics of Shanghai leisure industry are analyzed. The paper suggests that Shanghai should transform the model of economic development and adjust industrial structure. Especially, facing the impact of financial crisis, Shanghai should optimize the leisure industrial structure. Finally, the promote strategies and direction of Shanghai leisure industry are proposed.