Taking Sphagnum palustre and S. fallax as test materials, this paper studied their growth and interactions under shading. In monoculture, shading promoted the height growth of S. palustre markedly, but had no effect on the growth of S. fallax and the biomass and branching of S. palustre. In mixed culture, S. fallax suppressed the increase of biomass and branching of S. palustre, while S. palustre had no effects on S. fallax. With the increase of shading stress, the competition of neighbour on S. fallax intensified. When the stress increased further, neighbor effect on S. fallax tended to be positive. However, the effect of neighbour on S. palustre was always competitive and did not change with the increase of shading stress.