Abstract: In this paper, based on the survey of the farmers in rural-urban community, using social stratification theory, in view of various forms and different level of social stratification in rural-urban community, combining with division of occupation in local household registration, the differentiation of farmers' means of production and the differentiation of peasants' income level, the author points out the social differentiation problem in the process of urbanization. The author argues that the differentiation of interests, the development of non-agricultural industries, towns and markets, the economic level, geographic location and resource conditions are the reasons for social differentiation. Social differentiation has played an important role in the development of urbanization to a certain extent, but it has also caused problems such as the widening gap between the rich and the poor, development imbalance, and prominent conflicts of interests.