A paper punching machine is developed which can automatically punch, remove and collect the paper. Through analyzing the punching features of the paper products, a punching die and removal mechanism were designed suitable for paper machining. Based on researching mechanical structure and pneumatic system control principle of the punching machine, double delay relay was used to automatically control punching and discharging process. Application in practice results show that the use of the punching machine successfully solved the frequent problem that the paper and the punch cannot be separated, and effectively improve the punching precision, quality and production efficiency. It can meet the needs for paper products industry, and has higher practical application value.