This article has analyzed the influence factors of urban-rural income disparity in Shandong Province from two aspects: the development factors and the dual economy factors..The result indicates that along with the economy development in Shandong Province, urban-rural income disparity has the further expanded tendency. The influence of economic development factors is at the rising stage of Kuznets invert U curve; Dual economy factors, population structure and policy deviation are the key factors which result in the enlargement of urban-rural income disparity.