By using the data from 1978-2006 of southwest of China which reflect urbanization and industrial structure upgrading, by using unit root test of modern econometrics and based on quantitatively studying inner relationship between urbanization and industrial structure upgrading in southwest of China, this paper points out that there is a long-term relation between urbanization development in southwest China and industrial structure upgrading, but the relation is not obvious, 〖JP3〗meanwhile, urbanization process acceleration is helpful to industrial structure upgrading in this area, but industrial structure upgrading can not support upgracting of urbanization level.