From the angle of urban and rural aging population inversion phenomenon in China and the challenges brought by it, this paper analyzes the relationship between urbanization and aging population inversion in urban and rural areas in China. In the long term of traditional process of urbanization, population transfer is mainly labor transfer, and the elderly population transfer has been driven by the transfer is limited, thus improve the degree of aging of the rural population and have an impact on the balanced urban and rural development. This population transfer mode is the main reason for the formation of urban and rural aging population inversion. Meanwhile, urban and rural aging population inversion have an impact on urbanization, it not only affects the level and pace of urbanization, but also affects the quality of urbanization. To alleviate this condition, we must take a new urbanizing road, change the urban and rural population transfer mode, and integrate urban and rural social security system.