Abstract: As Analysing problems existed in pillarless sublevel caving method(PSCM),the PSCM should be seen as an integrated unit of which the different components are linked with each others.Based on pointing out the relationship and linkage of different components,a theory called System's Evolution and Dynamic Optimization is established.The theory is a breakout for studying the PSCM and possesses great value in theory development and practical application.Besides,some important issues in PSCM relating to economic benefits of mining activities are raised.