In order to solve the heat dissipation problem of LED (light-emitting diode) downlight, CFD thermal simulation software was used to establish LED downlight dissipation model. Materials thermal conductivity, thermal resistance, thermal emissive values, heat load forms and other factors were all taken in considered, and then numerical simulation combined with laboratory measurement methods was used to analysis the lamps dissipation. Based on this method, focused on the dissipation effect with different LED quantities and LED ring distances, and then optimized light source layout of current LED downlight products. After experimental verification, LED working temperatures were more ideal after the light source layout optimized, and it can improve the LED lamp lifetime effectively, this result also has important practice significance in the future LED downlight design process.