Abstract:We built an relationship between urbanization and tertiary industry in China with a In-depth analysis.The relationship based on vector regression model?and press the data of urbanization and employment share from 1978 to 2014.Getting a conclusion:There is a long-terma balance ?relationship between urbanization and tertiary industry of?China?and become the granger reasons for each other.Urbanization and tertiary industry of?China?have a strong interaction and the contribution to each other's fluctuations are showing a rising trend.Finally According to the research conclusions, we put forward some feasible suggestions for the development of urbanization and the development of the third industry.