Satellite remote sensing is an important technique providing long-term and large-scale information of formaldehyde (HCHO), which plays a crucial role in atmospheric chemistry. Low signal-to-noise ratio and poor stability of the Environmental Trace Gases Monitoring Instrument (EMI) On board Gaofen-5 satellite, the first Chinese space-borne spectrometer, make HCHO retrieval extremely difficult. Here we firstly retrieved HCHO vertical column densities (VCDs) from EMI through in-flight spectral calibration, retrieval setting optimization and stripe correction. Retrieved EMI HCHO VCDs correlate well with those measured by Multi-AXis Differential Optical Absorption Spectroscopy (MAX-DOAS) with normalize mean bias (NMB) below 25%. EMI HCHO VCDs are comparable with those observed by Ozone Monitoring Instrument (OMI) and TROPOspheric Monitoring Instrument (TROPOMI). This study reveals that HCHO can be observed successfully by algorithm optimization despite of poor performance of space-borne spectrometer. The retrieved EMI HCHO VCDs are applied to locate emission sources of volatile organic compounds (VOCs).