Objective: To understand the status quo of service capabilities of township health centers (THCs),and give some advices on promoting the implementation of new healthcare reform in China. Methods: By methods of documentation, questionnaire survey and experts investigation, the service level of township health centers in Lianyungang city was studied. Descriptive statistical analysis method was mainly used. Results: The distribution of health resources was not reasonable, and obviously concentrated on the higher-level health institutions. Mainly by extensive pattern of growth, service capabilities of THCs had been enhanced in the past few years, public health services had been strengthened and medical services rapidly increased, while the overall quality and the structure of rural health professionals were not less than satisfactory, the phenomenon on paying more attention to medical services than prevention services was still existed. Conclusion: Health resources for grass-root service should be enhanced, and the programme of health human resources should be actively formulated and implemented. THCs should improve its management level, take the road of intensive development, and strengthen performance evaluation to promote public health services and basic medical services.