56 surface sediment samples were collected from Hunhe River, Taizi River, Dahuofang Reservoir in Liaohe River basin. Sediment quality criteria for heavy metals in Liaohe River basin were established by Equilibrium Partitioning(EqP) approach which was modified by author, the SQC (base on CCC) of Cu, Pb, Zn, Cd were 75.26 μg/g, 25.72 μg/g 255.96 μg/g and 2.52 μg/g. Based on heavy metal acute and chronic aquatic toxicity, three grades sediment quality standards for heavy metal in Liaohe River basin were set and sediment pollution index (SPI) that a new assessing method was created accordingly. The author applied the established standards of Liaohe River basin to assess the sediment quality by SPI method, results showed that sediment quality in the middle and lower streams of Hunhe River, up and middle streams of Taizi River, middle and end of Dahuofang Reservoir were middle risk which meant that benthic survived in such heavy metal pollution sediment would suffer slight chronic toxicity effect of heavy metal. Hongtoushan Copper Mine that in the middle stream of Hunhe River and Shenyang Industry in the upstream of Xi River made extremely high sediment risk for discharging much wastewater to Liaohe River basin.