OBJECTIVE：To explore price management mechanism of medical service in Macau of China，and to provide reference for the formulation of price management mechanism of medical service in the mainland area of China. METHODS：From two key links of pricing and compensation，price management mechanism of medical service in Macau was introduced. RESULTS & CONCLUSIONS：In respect of pricing，Macau Health Bureau as pricing subject set up guide price for public health institutions by marginal cost pricing，which focused on technology value and labor value of medical staff，and graded pricing for health institutions at various levels. In respect of compensation，compensation subjects included government，social security funds，charitable organization， etc. The government provided fixed-rate compensation for citizen by allocating funds for public health institutions，so as to improve compensation level for primary health institutions. The social security funds extended sick benefit to insured patients， and compensated patients at fixed rate. Charitable organization subsidized private health institutions to reduce medical service price. Finally，actual price has been formulated through pricing and compensation links，and the experience is worthy of learning by the mainland of China.