Underground logistics system (ULS) tends to alleviate traffic congestion, increase city logistics efficiency, mitigate the negative effects of traditional logistics processes, and improve the sustainability of urban areas. However, the relatively high cost and risk of underground construction are serious obstacles to implementing ULS. Integrating ULS into modern metro system (M-ULS) is considered to be feasible and efficient to solve this problem. is paper aims at developing a metro system-based ULS network planning method. First, an evaluation model of underground freight volume was proposed considering service capacity, freight flow, and regional accessibility. Second, a set of mixed integer programming model was developed to solve the problem of optimal nodes' location-allocation (LAP) in the network. en, a hybrid algorithm was designed with a combination of E-TOPSIS, exact algorithm, and heuristic algorithm. Finally, two lines of Nanjing Metro were selected as a case to validate the proposed planning method. e results showed that the new system can significantly reduce the construction costs of ULS and alleviate traffic congestion. Moreover, the potential of metro stations and underground tunnels can be fully exploited to achieve higher logistics benefits.