As a part of cities, underground space plays an important role in the development of cities in the future. In this paper, the characteristics of underground spaces in Hangzhou, including underground traffic facilities, underground complex structures, underground municipal facilities and air defense facilities, are analyzed. The stateoftheart of the development of underground space in Hangzhou is presented in terms of development amount and development per capita, distribution and development level and development functions, and the problems thereof are analyzed. The development of underground space in Hangzhou in the future is presented and prospected. In the end, the potential technical problems in the development of underground space in Hangzhou, such as special geological conditions, disaster prevention, environmental protection and life cycle digitization of underground space, are analyzed.