The　change　of　investors＇　sentiment　is　one　of　the　important　factors　which　can　affect　the　volatility　of　stock　price.　However,　few　studies　are　related　to　stock　bubble　from　the　perspective　of　investor　sentiment.　Based　on　behavioral　finance　theory,　this　paper　builds　the　investor　sentiment　index　by　principal　component　analysis.　And,　it　uses　the　quarter　panel　data　of　listed　companies　of　our　country　in　2006-2015,　explores　the　relationship　of　investor　sentiment　and　stock　bubble.　It　indicates:　1)　it　finds　that　stock　bubble　is　positively　correlated　with　investor　sentiment,　new　stock　accounts,　market　price　earning　ratio,　the　amount　of　IPO.　Meanwhile,　the　stock　bubble　is　negative　correlation　with　volume　of　market　transactions,　market　turnover　rate.　2)　it　calculates　the　fundamental　value　of　the　stock　by　using　residual　income　model,　and　finds　that　there　are　lots　of　bubbles　among　the　listed　companies　of　our　country.　The　results　improve　the　system　of　behavioral　finance　theory,　and　provides　some　suggestions　for　government.　©　2018　IEEE.