Abstract: In order to accurately grasp variation law of mine subsidence and predict trend of subsidence, the paper proposed a prediction method of mine area subsidence by use of gray model. Combining with an instance of subsidence observation, it used two methods of precision test of gray model and F distribution of mathematical statistics to test and analyze predicting results of the gray model. The results showed that the gray model meets precision requirements of prediction of mine area subsidence and improves prediction precision with increase of adopted data amount.