A residential quarter accommodates substances, life and even the resident's spirit, a place, in and ar ound, where people spend most of their life. It is also the epi tome of such urban phenomena as land shortage and i ts rising price as well as environmental deterioration. Therefore, how to balance efficient land utilization and bette r living condition is a significant question for urban resea rch. As a limited natural resource, underground spa ce, with its own advantages, can be used in a wide range of area s like transportation, commerce, hazard prevention and environmental protection, boosting the substantial development of cities. This thesis is to study the environment design of underground space within residential quar ters in respective terms of psychological environme nt, air environment, lighting environment as well as sonic environment, with a hope to offer some ideas and su ggestions on building a cozy underground space in the quarters.