Abstract: All-rounded rural revitalization is part of common prosperity. Collaboration of divergent institutional logic dominated by Party and administrative ones is putting forward the modernization of rural areas in China, which is meanwhile confronted with governance challenges. This paper, using two typical villages, conducted an empirical analysis to illustrate how grassroots governments adopt different strategies to hybridize logic of market and community in rural revitalization. Results showed that, two different development modes were formed with divergent hybridization of institutional logic, namely competition mode and collaboration mode; the former was dominated by market logic strengthening competition and use of best resources and the latter dominated by community logic claiming benefits sharing and common use of resources. Both modes were good practices for village development, however, they vary in structure characteristics, starting motivator, change intensity, and behavior strategy etc. More importantly, they brought different governance effectiveness. Thereby, to make full use of advantages of each institutional logic was the development starter of village, the hybridization process was an important intermediate variable for governance effectiveness. Well-balance between institutional logic was the key to realize all-rounded rural revitalization and common prosperity.