Abstract: Based on the inter-provincial panel data from 2011 to 2021, this paper empirically studied the impact of agricultural green total factor productivity (AGTFP) on the urban-rural income gap, and examined the intermediary role of labor transfer in this process with the help of the mediation effect model. The results showed that: (1) Heterogeneity analysis reveals that the impact of AGTFP on urban-rural income gap was not significant in the eastern region, where as it exhibited a significant “U-shaped” effect in the central, western, and northeastern regions, with the characteristic effect pattern being “western > central > northeastern” . (2) Labor migration could inhibit the widening of the urban-rural income gap, while AGTFP had an inverted “U” shaped impact on labor migration, which was first promoted and then inhibited. Additionally, levels of fiscal expenditure, economic development, social security expenditure, and technological investment might lead to the widening of the urban-rural income gap, while the level of urbanization had a converging effect. (3) AGTFP could have a “U” shaped impact on the urban-rural income gap through labor migration, which first narrowed and then widened. To achieve this, It was crucial to enhance research and development in green technology, optimize the allocation of agricultural resources and the structure of urban-rural labor mobility, and formulate differentiated policies for green agricultural development in order to narrow the income gap between urban and rural areas and effectively promote the process of common prosperity.