Urbanization is an important factor affecting the urban-rural income gap of China. Based on 1997 -2014 pro- vincial panel data, the paper employs threshold-effect model to study the effects of urbanization on the urban-rural income gap at nationwide and regional level respectively. The study shows that there is significant threshold effect on iurben-rural income gap aroused by urbanization. Further, the regression results based on eastern, central and western subregion shows that urbanization can narrow urban-rural income gap in western region but deteriorate the gap in central and western reg...