Compact city is the concept of sustainable development, which aimed at the city spread disorderly development is put forward. The form of compact city depends on the density of population and buildings in a city, emphasize the mixed use and intensive development of land. It is a kind of new thinking based on efficient use of land resources and the development of city. After compact city as a new urban development mode is put forward, to discuss whether it is conductive to China's urban sustainable construction has been continuously. This paper, at first, expounded the development of the concept of compact city and its basic connotation, then analyzed the present situation and significance about the compact city in China. Finally, China drawing on the experience of compact city needs to foster strengths and circumvent weaknesses, and puts forward some opinions on the compact city in China at the present stage of city sustainable development.