Butter sculpture is a jewel of Tibetan Buddhist art with important artistic value. The art of butter sculpture at Kumbum Monastery in Qinghai Province is particularly famous, and has become one of the “three consummate arts” of the monastery. Nevertheless, current state of its development at Kumbum Monastery worth to be worried about: there is a lack of people to carry on the tradition, which would result in a decline. While analyzing the causes that have lead to this state, this paper will also put forward some strategies to preserve and develop this precious traditional art form.