The invention discloses a method of utilizing taxus lateral root proliferation to produce paclitaxel, the steps are that: (1) annual or biennial taxus branches are selected as cutting materials; (2) after the cuttings are sequentially injected into KMnO4 solution, sucrose solution, and plant growth hormone solution for soaking, the cuttings are conveyed to cutting substrate; (3) the cuttings are pulled out after the roots grow up, and are continually conveyed to the cutting substrate after being processed with hormone; (4) a certain quantity of the lateral roots are cut for producing the paclitaxel; (5) being dried under temperature control at the temperature that is less than or equal to 55 DEG C, pure products of the paclitaxel are obtained after processes of grinding, concentrated organic solvent extraction, column chromatography, solvent recovery, crystallizing and drying; or the cut taxus lateral roots are cultured in a improved Murashige and amp;Skoog fluid nutrient medium, bacteriostat is added in the nutrient medium, 2 to 9 days after fresh taxus lateral roots are induced and processed by elicitors, the pure products of the paclitaxel are extracted. The invention provides a new approach for medicine sources of the paclitaxel, and the shortcomings in artificial cultivation of the taxus are solved of low rooting rate, low survival rate after the roots are cut, slow roots proliferation speed, etc.