This paper proposes a method to study the correlation between customer demand and engineering characteristic in quality house based in grey correlation. It uses absolute grey correlation analysis in generalized grey correlation analysis for further analysis. It gets the importance matrix of initial customer demand degree and engineering characteristics by experts, customers and vendors comprehensive scoring, and gets the grey correlation through relevant calculation. Finally the demand-characteristic absolute grey correlation matrix is obtained. Then the matrix is used for advantage analysis to determine the important degree of engineering characteristics and the＂bottleneck technique＂. Finally a specific case is used to illustrate the application of the method.