Abstract: Structural equation modelling (SEM) is a new kind of statistical technology and research method, which is applicated more and more in the fieldof psychology and social science in recent years. This article introduces theresources, development, basic concepts, analytic procedure, and correspondingcomputer statistical package LISREL based on nonmathematical language.Theauthor considers that SEM has four types of advantages: a. Introduction oflatent variables makes the research more profound; b. Confirmatory analysisfollowing common linear models makes the research more meaningful; c. Com-plex relationships within multivariates are treated appropriately; d. Structu-ral equation models are characterized by invariation in model parameters.Therefore Chinese psychologists should pay attention to SEM.

Key words: structural equation modelling (SEM), statistical method, LISREL, psychological research