Abstract: With the development of pulp and paper supply chain, the close cooperation between the forest company and the pulp and paper company is the key factor for the stability of supply chain. Under consideration of the characteristics of pulp and paper supply chain, this paper proposed a stackelberg real options game model based on the real options theory. The options pricing decisions of the forest company and the reservations and execution number decisions of the pulp and paper company were analyzed. Studies show that the real options contract can ensure the supply of raw materials for the pulp and paper company. And it can reduce the risk of the forest company and increase the profit of the forest company.