Based on seven stations’ monthly precipitation data in Yunnan and the NCEP/NCAR monthly atmospheric circulation data, as well as ERSST V3b monthly sea surface temperature (SST) data, the Indian-Pacific SST mode that impacts Yunnan precipitation during rainy season was investigated using composite and correlation analysis. Of El Niño-Southern Oscillation (ENSO) and Indian Ocean Dipole (IOD) mode, which plays a more important role on Yunnan precipitation in rainy season? Finally, the physical mechanism through which Indian-Pacific SST mode impacts Yunnan precipitation in rainy season was discussed. The results are as follows. Both ENSO and IOD have influences on Yunnan precipitation in rainy season, but the IOD plays a more important role. When the western India Ocean’s SST is warmer (positive IOD), the easterly wind appears in the tropical Indian Ocean and a cyclonic anomalous circulation is in the western Indian Ocean. The warm and moist airflow in the western Indian Ocean enters the Mainland China along the west side of the Tibet Plateau, then goes around the Tibet Plateau and from the north to the south, and finally enters the Bay of Bengal, which limits the development of the trough over the Bay of Bengal. So, the water vapor transportation to Yunnan is less. Yunnan is in the water vapor flux divergence area and has less precipitation. When the tropical Indian Ocean has lower SST (negative IOD), no easterly wind is in the tropical Indian Ocean, the trough over the Bay of Bengal is strong, and the water vapor transportation to Yunnan is more; Yunnan is in the water vapor flux convergence area and has more precipitation.