Abstract Based on the panel data of 30 provinces from 2004 to 2020, this paper analyzes the relationship between new urbanization and common prosperity with the help of dynamic panel system GMM model. There are following findings: The new type of urbanization can significantly improve the level of common prosperity, and it is an effective way to promote common prosperity in the new development stage; There are obvious regional differences in the impact of new urbanization on common prosperity, showing an overall distribution pattern of northwest>northeast>southwest>south China>central China>north China>east China; The impact of new urbanization on common prosperity has a single threshold effect based on human capital accumulation; Under the threshold condition of human capital accumulation, the impact of new urbanization on common prosperity presents a nonlinear characteristic of positive and increasing marginal efficiency; Under the constraint of the threshold conditions of industrial structure upgrading, the impact of new urbanization on common prosperity shows a “ U ” shaped characteristic. Further study finds that under the constraints of different thresholds of human capital accumulation and industrial structure upgrading, the impact of new urbanization on common prosperity in different quantiles is different. Therefore, we should strive to promote the citizenization of agricultural transfer population, establish a human capital transfer mechanism, promote industrial digital transformation, and provide assistance for the solid promotion of common prosperity.