Abstract: Based on the panel threshold model, the threshold effect of financial agglomeration on new-type urbanization was tested by analyzing provincial data from 2006 to 2015. Results show that the level of financial agglomeration and new-type urbanization in China has accelerated in the past ten years; the regional imbalance and gradient distribution characteristics are obvious; and the threshold effect of financial agglomeration on new-type urbanization is significant. The function mechanism of financial agglomeration on new-type urbanization in the eastern region is constantly optimized; the promotion mechanism of financial agglomeration on new urbanization in the central region needs further adjustment and promotion; and the financial agglomeration in the western region has a significant positive impact on the new-type urbanization. It is necessary to focus on the level and quality of financial agglomeration in central region, optimize the direction and efficiency of capital investment, optimize support for innovation-driven and eco-environmental protection projects, so as to enhance the role of financial agglomeration in promoting new-type urbanization.