As an economical and effective technology, plunger gas lift is widely applied in drainage gas production. At present, the adjustment of working system of plunger gas lift drainage gas production wells usually depends on field experience, which is difficult and inefficient. Based on the analysis of gas production, liquid production and plunger movement speed under different working conditions, the rising process of the plunger is divided into three stages in accordance with the its operating characteristics. Based on the basic motion equation of the plunger, the solution method of the motion equation of the plunger in each stage is studied and the dynamic simulation software system of the plunger gas lift drainage gas production is developed as well. Through case study, the system can effectively simulate the production performance of plunger gas lift drainage gas well under different working conditions and provide a basis for determining a rational working system. Finally, field application of a well test shows that the average gas production is increased from 16 323 m3/d to 18 724 m3/d and the average drainage is increased from 1.73 m3/d to 1.87 m3/d, which provides reliable theoretical basis for the field application of plunger gas lift.