  We propose a mechanism which can explain the large BR(B-> X_s eta')~ 10^(-3)
observed by CLEO. In this mechanism, eta' is produced by the fusion of two
gluons, one from QCD penguin b->sg and the other one emitted by the light quark
inside the B meson. The inclusive decay rate which is calculated via using the
factorization assumption, can easily account for the observed branching ratio.
We also estimate the exclusive branching ratio BR(B->K eta')=7.0X10^(-5) which
is in good agreement with the experimental data and present our prediction for
K* mode BR(B->K* eta')=3.4X10^(-5).
