Since the introduction of Labor Dispatch Law in the 1980s, it has been more and more welcomed by the public, especially since the introduction of labor dispatch law. However, while bringing convenience to employers and workers, there are also many problems, such as the definition and compensation of industrial injury in labor dispatch. Although some provisions have been made in labor related laws, due to the rapid development of society and the complexity and diversity of employment practice, the identification and compensation of industrial injury in labor dispatch has gradually become a major problem hindering development. This paper focuses on the application of industrial injury compensation in labor dispatch, and puts forward some suggestions on strengthening responsibility distribution and supervision.