Examining the mechanism through which new-type urbanization influences high-quality agricultural development is a crucial research topic. It is essential for achieving comprehensive rural revitalization through urban-rural integration and for identifying effective pathways to modernize agriculture and rural areas. To scientifically examine the impact of the new-type urbanization pilot policy on high-quality agricultural development, this study employs a staggered Difference-in-Differences model on panel data from 262 prefecture-level cities from 2011 to 2022.The results show that new-type urbanization can significantly enhance agricultural green total factor productivity, with notable variations related to geographical location, functional zoning, and economic development levels. New-type urbanization policy facilitates high-quality agricultural development through three primary pathways: Narrowing the urban-rural income gap, promoting digital inclusive finance, and improving human capital. The findings of this study contribute to exploring regionally differentiated pathways for advancing new-type urbanization and provide theoretical references for agricultural modernization efforts.