The low propagation coefficient was a main obstacle in tree peony regeneration for a long time. Here, we present a new plantlet regenernation system to significantly improve the propagation coefficien in tree peony regeneration by lateral buds exsectting and engraving. The procedure are briefly as follows: (1)The medium for proliferation was WPM + 6-BA3.0mg/L + IAA 0.2mg/L, with the proliferation rate up to 787.05%; (2)The medium for plantlets rooting was 1/2 WPM medium supplemented with NAA 1.0 mg/L and IBA 4.0 mg/L which obtained 81.33% rooting rate. Compared with the control, the adventitious buds induction rate was significantly increased with the maximum reaching 96% and the number of adventitious buds were increased by 2.6–4.8 times through cutting. The plantlets were successfully transplanted to potting and the survival rate of transplanted plantlets was 90%.