In order to reduce the labor intensity in seedling raising and transportation of mechanically transplanted rice seedlings, the mechanical transplanting technique of small seedlings of indica rice was explored in the indica rice growing area of Yunnan Province. Jiyou 716 was used as material, two sowing rates of 160 g/tray（T1） and 180 g/tray（T2）, with the seedling age of 9 days, and 6 trays of seedlings per 667 m² were set, with conventional sowing rate of 70 g/tray, 15-day seedling age and 15 trays seedlings per 667 m² as control, the differences of seedling quality, transplanting quality, tiller number and yield were studied. The results showed that the seedling quality of T1 and T2 treatments was worse and the empty hill percentage was higher, but the basic seedling number per hill, tiller number and effective spikes were significantly higher than the control. The higher effective panicle number was the main reason for the increase of yield in T1 and T2 treatments. The seed consumption in T1 treatment was reduced by 8.57% and the number of trays was reduced by 60%, but the yield was increased by 9.0% compared with the control. The technique has the obvious effects of cost savings and efficiency increasing, and has great promotion potential.