Abstract: With rapid urbanization in China, it is of great significance to explore the relationship between farmers’ livelihood capital and livelihood strategies to achieve farmers’ sustainable livelihoods. Based on the analysis of the differentiation characteristics of farmers’ livelihood capital in Qingpu District of Shanghai, and applying a multinomial logistic regression model, this paper explored the quantitative relationship between farmers’ livelihood capital and livelihood strategy and identified some major factors affecting farmers’ choice of livelihood strategies. Results show that: 1) for those well-developed districts under the background of rapid urbanization, farmers adopt various forms of livelihood strategies, including conventional agriculture strategy, specialized agriculture strategy, agriculture dependent strategy, non-agriculture-dependent strategy, and non-agriculture strategy; 2) farmers with different livelihood strategies show different characteristics in livelihood capital. Households with specialized agriculture show the highest livelihood capital, followed by households with non-agriculture dependent, households with non-agriculture, households with agriculture dependent, households with conventional agriculture. In addition, Specialized agriculture households have significant advantages in natural capital, physical capital and financial capital; non-agriculture households have advantages in human capital; non-agriculture-dependent households show the highest social capital; and 3) results of multinomial logistic regression model show that overall family labor ability and other six factors significantly affect farmers’ choice of livelihood strategies, among which household average annual income plays an important role. In summary, the status of farmers’ livelihood capital has an effect on their choice of livelihood strategies. The Government could take targeted measures for households with different livelihood strategies to improve their livelihood capital status, and further achieve farmers’ livelihood transformation and sustainable development.