The paper introduced methods of construction of GPS monitoring network, observation method of vertical deformation of coal mine and data processing method, gave analysis and contrast of GPS monitoring results with the second order leveling results, and concluded that vertical deformation results of coal mine monitored by GPS static positioning technology can reflect subsidence and excavation of mine,the average difference between GPS measuring result and the precise leveling one is less than 2 mm, and the value and precision of geodetic height measured by GPS can fully reflect vertical deformation of mine.