To explore the policy effect and the mechanism of well-facilitated farmland construction on green utilization of cultivated land, this paper provides a science reference for realizing the green utilization of cultivated land. Based on a panel data of 30 provinces in China, this paper estimates the policy effect and the mechanism of well-facilitated farmland construction on the green utilization of cultivated land by the continuous difference-in-differences model. Results show that: 1) the well-facilitated farmland construction had a significant effect on green utilization of cultivated land, and the robustness test also confirmed the reliability of results; 2) the effects of well-facilitated farmland construction on green utilization of cultivated land in dry, paddy and main non-grain producing areas were more significant; 3) the well-facilitated farmland construction helps the realization of green utilization of cultivated land by adjusting the planting structure and upgrading the level of agricultural mechanization. Therefore, to continuously promote the implementation of well-facilitated farmland construction policies, this paper suggests: enhancing the post-construction management and maintenance of high-standard farmland, focusing on cultivated land conservation while improving agricultural productivity, improving protection policies for primary grain-producing areas according to the specific types of land, preserving the ecological environment in ecologically fragile areas to prevent over-cultivation, improving the coordination of factor allocation and the green utilization of cultivated land, and encouraging the specialization in grain cultivation, centralized and continuous cultivation, and elevation of comprehensive operation level of agricultural machinery.