Laguerre-Gaussian Schell-model (LGSM) beam was proposed in theory [Opt. Lett.38, 91 (2013 Opt. Lett.38, 1814 (2013)] just recently. In this paper, we study the propagation of a LGSM beam in turbulent atmosphere. Analytical expressions for the cross-spectral density and the second-order moments of the Wigner distribution function of a LGSM beam in turbulent atmosphere are derived. The statistical properties, such as the degree of coherence and the propagation factor, of a LGSM beam in turbulent atmosphere are studied in detail. It is found that a LGSM beam with larger mode order n is less affected by turbulence than a LGSM beam with smaller mode order n or a GSM beam under certain condition, which will be useful in free-space optical communications.