To meet the enterprise development requirements, the distance education is the important educational technology in continuous education. Design to distance education courses, improvement of the teaching method and promotion of teaching quality are some important problems in continuous education through application of distance education. The engineering continuous education situation at home and abroad is analyzed, the teaching content designed in continuous education should not miss the direction of enterprise production characteristics. A method of distance education with project development was proposed, some factors were paid attention to such as continuous education intention, educational personnel and teacher suit for net teaching and study environments, the review way and criterion to net teaching, attachment importance to the abilities of technical personnel to get more information and so on. This method had been applied in Hefei forming machine tools company. 27 technical persons were educated through distance education in 3 years. 5 engineers were awarded the engineering master degree. 20 new products were developed and earned 2500 million yuan, the products types were expanded from single automobile field to some fields of forming, airplane and energy. The economic and social results were better.