<p>Trust is essential for community cohesion and rural livelihoods. While rising religious diversity may lead to the formation of distinct faith-based groups, its impact on trust remains underexplored. Drawing on social identity theory and intergroup contact theory, this study examines the impact of village-level religious diversity on individual trust. We use data from the 2011 Chinese Household Ethnicity Survey (CHES) and the 2012-2021 Chinese General Social Survey (CGSS). Religious diversity is measured using two key indicators: fractionalization and polarization indices. Applying both a linear regression model with county fixed effects and an ordered logit model, we find that higher levels of religious diversity in villages are associated with lower trust, not only in close relatives but also in strangers and certain professional groups. In times of crisis, individuals may turn to religion for comfort, which can intensify intergroup boundaries. Further analysis indeed reveals that natural disasters exacerbate the negative impact of religious diversity on trust. Importantly, we find that improving communication skills, rather than enhancing information acquisition, helps mitigate these negative effects. Heterogeneous analyses show that individuals tend to adopt their community’s attitude towards religious diversity, emphasizing the importance of community-level guidance. This study contributes to the literature on identity-based diversity by focusing on religion, an underexamined dimension in rural China. Policy implications include promoting a unified language system to build trust, reduce intergroup distrust, and ultimately support the sustainable development of rural communities.</p>