Abstract: Focusing on the impact of economic policy uncertainty on the income gap between urban and rural areas, this paper uses econometric methods such as panel data fixed-effect model, generalized moment estimation, and instrumental variable regression, combined with a variety of robustness tests, and uses China's provincial panel data from 2009 to 2023 as samples for theoretical analysis and empirical testing. The results show that economic policy uncertainty has a significant widening effect on the income gap between urban and rural areas. Mechanism analysis from the perspective of income shows that the impact on rural residents' income being greater than that on urban residents is an important mechanism for the expansion of the income gap between urban and rural areas due to economic policy uncertainty. Heterogeneity analysis shows that economic policy uncertainty has a significant positive impact on the urban-rural income gap in regions with high marketization, perfect infrastructure and low human capital. The effect of economic policy uncertainty on the urban-rural income gap increases with the increase of the quantile of the urban-rural income gap. Based on this, it is suggested to improve the income distribution between urban and rural areas by decreasing t economic policy uncertainty, so as to provide support from policy-making and optimization for promoting common prosperity for all the people.