The language laboratory has been used in china for foreign language teaching for many years. Unfortunately, not all the language laboratories have been fully utilised and well administered. It is therefore essential for Chinese EFL teachers to become aware of the existing problems and explore avenues for improving the use of the language laboratory. This study aims to identify and to analyse the problems involving materials, methodology and administration in the use of the language laboratory and to discuss possible ways of solving or, at least, reducing these problems. The language laboratory itself is only a mechanical teaching aid. Language laboratory materials, teaching methods and the administration of the language laboratory are fundamental parameters which determine the effective use of the language laboratory. In this study, a review on the different theories and recent developments of language laboratory usage are examined. This is followed by a description of the problem areas in the use of the language laboratory in China. A survey on language laboratory use in Australia is offered as a model for comparison. Finally, implications are put forward and suggestions are made to Chinese EFL teachers in the hope that this may lead to more effective and efficient use of language laboratories in the future.