With the development of social organization form and family structure,the nursing home mode becomes an inevitable tendency to solve the problem of supporting old people in modern society. On the depth interviews of 42 old people in Yantai, the influence factors model of urban elderly people's choice of nursing home mode is constructed by three-level encoding. Grounded theory research is used to analyze raw data. The research suggests that factors affecting the urban elderly people's choice of nursing home mode are the factors of elderly people, the factors of the children and the factors of the nursing home. Corresponding suggestions are put forward to settle the problem of provide for the aged.