The rapid transformation of the society and low child birth rate has led to a decrease in working-age population. The military is a small version of the society and is considerably affected. This, along with downsizing of military organizations, has caused an imbalance in manpower supply and demand and military personnel thus had to play many roles at the same time. At a time like this, military officers and soldiers sometimes experience imbalance in personal mental state and maladaptation which often leads to mental disorder. In addition, there is an increase of the so-called ＂diseases of affluence＂ in today's society. Therefore, psychological counseling personnel in each unit play rather important roles as lubricant. Subjects of the research are military personnel. The research adopts a system dynamics approach to establish a model on the supply and demand of military counseling and medical personnel. The model looks at various extension of counseling period provided by senior counselors and counseling institution referral ratio and further carries out policy analysis. Research Result: Policies that both extend time of counseling (7 hours) and increase counseling institution referral ratio (30%) result in better improvement in quality of counseling, working-hour supply and demand ratio of primary counselors, patient evacuation ratio, number of patients with mental illness, and rough prevalence rate of patients with mental illness. Research Conclusion: Even though the military has gone through several phases of downsizing in recent years, the quality of psychological counseling shall still be maintained. It is not easy to train professional counseling personnel and that is why this research provides different scenario analysis as a reference for decision makers. The cultivation and training of professionals, working hour adjustment and cooperation with counseling institutions to maintain the supply-demand balance is truly a topic that requires careful consideration of policy makers.