Urban -rural integration development is a concentrated manifestation of Chinese-style modernization in the context of urbanization. It is an important support for dissolving the traditional urban-rural dichotomy, promoting the balance of regional productive forces, and establishing a new type of urban-rural relationship. It is also a crucial lever for advancing the implementation of the rural revitalization strategy and achieving common prosperity. Based on years of practice in urban-rural integration development in Zhejiang Province, this paper follows the logical thread of “theoretical cognition -differentiation identification -system reconstruction” and uses relevant cases of urban integration development in Zhejiang as basic references. It emphasizes the new achievements Zhejiang has made in the process of urban-rural integration development, the new challenges it faces, and the new directions it is exploring. Starting from the two major strategies of new urbanization and rural revitalization, the paper focuses on the optimization of mechanisms and enhancement of effectiveness in urban-rural integration development in Zhejiang in the new era. It advocates for advancing the demonstration of common prosperity by removing institutional barriers in urban-rural space, promoting market-driven mechanism efficiency, and improving the construction of public infrastructure and supply of public goods. This study aims to provide a new research paradigm and theoretical reference for promoting urban-rural integration nationwide, offering insights and references for the development of urban-rural integration across China.