<p>Rural industrial integration, defined as the integration of agriculture with manufacturing and services sectors, is essential for revitalizing rural economies in developing countries. In China, this process has advanced alongside land reforms that permit the market-based transfer of farmers’ contracted land-use rights, aiming to improve land use efficiency and support rural economic restructuring. This study examines how land transfer affects rural industrial integration in China, using a Rural Industrial Integration Index to capture the degree of cross-sectoral integration in rural areas. Based on provincial panel data from 2011 to 2020 and a two-way fixed effects model, results show that a 1-percentage-point increase in the land transfer rate leads to a 0.15% increase in the integration index on average. The effect is driven by industrial agglomeration, investment growth, and labor mobility. Heterogeneity analysis reveals stronger impacts in eastern provinces (0.32%) and in non-grain-producing areas (0.19%) compared to their counterparts. These findings underscore the catalytic role of land reform in promoting rural economic diversification. China’s experience offers valuable insights for developing countries aiming to enhance rural transformation through institutional land reforms.</p>