Jianghuai area extends across two major valleys—the Yangtze River valley and the Yellow River valley, which plays an important role in the study on the origin of Chinese civilization. Neolithic jade culture is an integral part of prehistoric culture system in this region. The archaeological data are selected and the important prehistoric sites are taken for example in the paper. The process of civilization in the region has been discussed by combining the research method of history. The developing principles of jade function are explored: jade has been widely used in ritual and religious activities, ceremonial jade has gradually formed, and jade has become an important auxiliary tool for the deacon personnel in religious activities. This paper draws the following conclusion: the long process of civilization started in Jianghuai area about five or six thousand years ago, in which jade has played an important role. Tombs unearthed a large number of jade and formed the altar, which is an important symbol of transition from theocracy to kingship for clan society. The advent of large center settlement site can be regarded as important sign of transition from the clan society to civil society in this region and is of great significance in studying on the formation of the early countries and the origins of civilization. The existence of a large number of jade vessels symbolizes wealth and power, and also gives birth to the ceremony civilization.