The effect of arbuscular mycorrhiza fungi (AMF) on plant growth and nutrition utilization in upland rice and mungbean intercropping system was studied. A pot experiment was conducted in the greenhouse and AMF colonization rates of rice and mungbean roots, plant nutrient contents, the ability of nitrogen fixation, and nutrient contents changed in the soil were analyzed. The results were obtained as follows: the rates of AMF colonization of rice and mungbean roots were reached to 14.47 and 92.2% in intercopping system, and increased by 4.11 and 11.95% compared with that of in monocropping; the nirtrogen contents of mungbean and rice were increased by 83.72 and 64.83% in shoots, and 53.76 and 41.29% in roots, respectively, while the contents of iron in shoot and root of mungbean were increased by 223.08 and 60.19%, respectively. In the intercropping system with inoculation of AMF, the biomass of mungbean increased by 288.8%. However, the biomass of rice was not significantly changed among all treatments with or without inoculation of AMF recorded. The number and dry weight of nodules were significantly increased either when mungbean was intercropped with rice or inoculated with AMF. When compared with that of monocropping without AMF inoculation, the contents of nitrogen, phosphorus and iron in nodules of intercropping mungbean with inoculation increased by 80.14, 69.54 and 39.62%, respectively. Additionally, intercropping with AMF inoculation significantly increased soil nitrogen content, but reduced soil phosphorus content. We concluded that upland rice-mungbean intercropping system and inoculation with AMF improved the nutrient uptake, the ability of nitrogen fixation and the growth of mungbean.