Using ontology and context knowledge in data mining is one of the effective waies to improve data mining accurateness,which can add general knowledge and certain knowledge in decision factors. How to apply ontology and context knowledge in data mining is discussed in this paper. Firstly,the integration model of ontology and context knowledge is presented,which includes context information categories,context information extended on ontology models and context transformation method. Based on those,using the hierarchy structure of the ontology and context knowledge integration model as an example,the induced learning algorithm is presented in terms of the integration ontology and context knowledge. The experiment of the induced learning is presented and its result is more effective and accurate.