With the development history and conception of the silvicultural system (SS), the system implemented in Germany in the early 19^th century was first introduced. The first level was product targets containing two categories, the second level was forest forms comprising five sub-categories, and the third level was operational models relevant to 14 silvicultural regimes. The evolution and application of time-honored SS techniques in other parts of the world are also briefly discussed. By defining the multi-functional forest management of China, this paper discusses the methodological points of a structured three-level multi-functional silvicultural system that was developed in China based on the application of the “Natural and artificial synergy” scientific mechanism and the “Multi-level, multi-functional, close-to-nature, life-cycle” technical principles. A detailed introduction is made for the prime level SS aimed at regulating the operation mode and lead function, the intermediate level SS for regulating forest type or tree species composition, and the last level for regulation of the full-cycle management plan for forest stands. This hierarchical structure with key technical essentials has been used in the national and provincial Forest Management Plan, and has been demonstrated in the 15 National Forest Management Base Regions with positive preliminary results. Lastly, three technical attributes, namely, structured mixed forests, retained selective cutting, and an operational plan to preserve partial dominant-tree life processes are the key techniques for multi-functional forest ecosystem management. They are essential for the contemporary forestry mode to practice the important concept of “Lucid waters and lush mountains are invaluable assets.”