Abstract:As a major agricultural province, Shandong ranks first in China in terms of total agricultural production value. However, there is still a significant gap in the level of agricultural and rural modernization compared to the Jiangsu, Zhejiang, and Shanghai regions. This highlights the necessity and urgency of advancing agricultural and rural modernization in Shandong. This study, based on spatial panel data from 16 cities in Shandong Province from 2007 to 2020, constructs an indicator system for agricultural and rural modernization and conducts comprehensive measurement. The Dagum Gini coefficient decomposition method and kernel density estimation are used to reveal the spatio-temporal differences in the development of agricultural and rural modernization. The Moran’s I is used to verify the spatial correlation of agricultural and rural modernization, and the random effects Spatial Durbin Model is employed for spatial econometric analysis. The research findings indicate that the development level of agricultural and rural modernization in Shandong Province exhibits substantial spatial disparities and significant spatial agglomeration. The low level of modernization in rural construction and agricultural production is a crucial factor restricting the progress of agricultural and rural modernization in Shandong. Moreover, both technological and economic factors significantly promote the development of agricultural and rural modernization in Shandong, with a clear spatial spillover effect. Conversely, the participation of the agricultural labor force negatively impacts the modernization process to a certain extent. Based on these findings, this study proposes countermeasures and suggestions from four dimensions: regional coordinated development, rural modernization construction, transformation of agricultural scientific and technological achievements, and the participation mechanism of the agricultural labor force. These recommendations aim to steadily advance agricultural and rural modernization and help create a model for rural revitalization in Shandong Province.