Abstract: The paper aims to eradicate poverty effectively in poverty stricken areas and meet the livelihood demands of the poverty stricken population. According to the sampling survey in Ningwu and Dai, which are located in northwestern Shanxi, the authors analyzed the livelihood characteristics and demands of the poverty stricken population. The results showed that: the livelihood of the poverty stricken population showed a certain vulnerability and uniqueness in Ningwu and Dai; the livelihood demands of the poverty stricken population were manifested in 7 aspects, including the resources and potentialities, employment and income enhancement, household participation in development, basic living standard, application of suitable technology, the level of infrastructure construction and the construction level of beautiful and livable villages. The performance of the livelihood demands of the poverty stricken population determined the corresponding countermeasures. According to the livelihood problem of the poverty stricken population, this paper constructs the research content which is the combination of endogenous development and the livelihood demands of the poverty stricken population.