In order to improve the recovery rate of lanolin, raw wool was studied as raw material for the extraction of lanolin, and extraction yield of lanolin under different conditions by the subcritical extraction process was also investigated. The influence on lanolin extracting rate by extraction condition including the subcritical solvent, extraction temperature, time, times and liquid-solid ratio were examined, respectively, and on the basis of single factor experiment, the response surface methodology was used to optimization the technological parameter. It is concluded that technology conditions with the highest extraction rate is at 65 ℃, extracting 10 min, with the ratio 1:10 of solid to liquid, and repeat the whole extraction process for 5 times, and on this condition, extraction rate of lanolin can reach 6.03%. Considering the actual production efficiency and influence on fiber properties, the resulting optimum process for subcritical extraction lanolin is at 50 ℃, 3 times, and extraction rate is 4.43%.