Taking 264 prefecture level and above cities in China from 2009 to 2023 as samples, a quasi natural experiment was constructed and multiple econometric models were used to empirically test the impact and transmission mechanism of the new urbanization comprehensive pilot policy on urban-rural common prosperity. The test results found that the implementation of the comprehensive pilot policy for new urbanization can positively promote common prosperity between urban and rural areas, and this conclusion is supported by a series of robustness test results. The results of the two-step mediation effect test found that high-quality full employment and market-oriented allocation of factors play an intermediary role in the process of promoting urban-rural common prosperity through the comprehensive pilot policy of new urbanization. The heterogeneity test results showed that compared to the spiritual level, small and medium-sized cities, and the central, western, and northeastern regions, the comprehensive pilot policy of new urbanization has a more significant promoting effect on the material level, large cities and above, and the common prosperity of urban and rural areas in the eastern region. Based on this, it is proposed to deepen the implementation of comprehensive pilot policies for new urbanization, establish a sound mechanism for high-quality and full employment of rural residents, and create an integrated market for urban and rural factor resources, providing useful references for solidly promoting common prosperity between urban and rural areas.