Generalized Green classes are introduced; some basic properties of members in a generalized Green class are studied. Finally, we apply the results to H(Λ), the Ringel–Hall algebra of a finite-dimensional hereditary algebra Λ over a finite field. In particular, it is proved that H(Λ) belongs to a suitable generalized Green class, and that there is direct decomposition of spaces H(Λ)=C(Λ)⊕J, where C(Λ) is the composition algebra of Λ and J is a twisted Hopf ideal of H(Λ), which is exactly the orthogonal complement of C(Λ).