Abstract: To address the challenges of complex understory environments and insufficient precision in traditional management of tree-herb systems, this study aims to establish a scientific and systematic intelligent monitoring indicator system and regulation system to enhance the modernization of management. Taking typical tree-herb systems in Fujian Province as examples, key monitoring indicators of the understory microenvironment were systematically sorted and multi-type real-time sensors were integrated with periodic high-throughput analyses. Dynamic monitoring was conducted on light, microclimate, air quality, soil, and vegetation responses. Based on monitoring data, precise regulation strategies for different forest types and medicinal species were proposed, and a closed-loop management system of "monitoring–diagnosis–regulation–feedback" was established and practically evaluated at multiple sites. Demonstration and application in over 30 bases in Ningde and Sanming, Fujian, showed that the intelligent monitoring and regulation system significantly improved the stability of the understory environment, with the proportion of time soil moisture remained in the appropriate range increased by 25%, medicinal yield increased by 18%, and resource use efficiency, including light, water and nutrient use efficiencies, improved by more than 20%. The system has realized data interconnection and intelligent management with local forestry information platforms. The constructed intelligent monitoring indicator system and regulation system for tree-herb systems effectively enhance the quality and economic benefits of medicinal plants and promote the high-quality development of the understory economy. Further improvement of indicator systems and integration of multi-source data and modeling are recommended to achieve coordinated ecological and economic benefits.