Abstract: The third party counterclaim is distinct from the traditional counterclaim system. It means that in the original lawsuit which the plaintiff sue against the defendant, the defendant of the original lawsuit separately sue a third party other than the plaintiff in the form of counterclaim and include the counterclaim herein in the same proceedings. The core value lies in the combination of the lawsuit third party system and the traditional counterclaim system. On the basis of the expanded interpretation of the subjective and objective scope of the traditional counterclaim, the counterclaim system is applied by means of analogized explanation, so as to solve the problem of the third party system. It has been recognized the legitimacy of the third party counterclaim system under certain conditions in legislation or practice both in France and Germany. Based on the foreign experiences, and combined with the investigation of basis of the third party counterclaim system of China, this paper suggests that China establish a third party counterclaim system, in order to broaden the channels for third party lawsuit and achieve one-off resolution of disputes.