Aiming at the specialty setting and teaching reform of vocational education in Xizang, this paper analyzes the regional economic pattern and the current situation of vocational education in Xizang, and proposes a new path to optimize specialty setting and teaching reform. First, by analyzing the regional economic structure and economic development trend of Xizang, the demand type and quantity of technical talents in various industries are clarified. The second is to systematically analyze the professional settings and teaching resources of Xizang’s vocational education, and find out the main problems and root causes. The third is to construct a matching model between regional economy and vocational education talent demand, and evaluate the adaptability of various industries to the demand for technical talents. Fourthly, propose optimization strategies, including professional optimization, curriculum reform, strengthening practical training, and teacher development. The analysis results show that Xizang’s characteristic agriculture, tourism and national handicrafts are the main pillar industries of the regional economy, but there are problems such as low modernization level and lack of infrastructure. The demand for high-level technical talents in emerging industries such as new energy and information technology has significantly increased. The vocational education in Xizang has some problems, such as the mismatch between the specialty setting and the regional industrial demand, the dispersion of resources, and the outdated curriculum. Insufficient professional settings related to emerging industries, and slow upgrading of traditional majors. Through the optimization of specialty setting and teaching reform, Xizang’s vocational education can better meet the needs of regional economic development, train high-level technical personnel, and promote the rapid growth of regional economy.