Common prosperity is an essential requirement of socialism. Promoting the realization of the value of village collective operating assets is a crucial measure to strengthen the village collective economy and enhance the common prosperity of rural households. This study investigates the impact and mechanisms of the realization of the value of village collective operating assets on the material and spiritual prosperity of rural households, employing theoretical analysis and empirical analysis using the CLDS database from 2014 to 2018. The results indicate that: 1) The realization of the value of village collective operating assets significantly enhances the material and spiritual prosperity of rural households, and this conclusion remains valid after addressing endogeneity and conducting a series of robustness tests; 2) This realization increases material prosperity by creating employment opportunities and improving the management capabilities of rural households, while it enhances spiritual prosperity by improving public services; 3) The impact of the realization of the value of village collective operating assets on the material and spiritual well-being of rural households demonstrates significant regional and individual heterogeneity, with a more pronounced effect on material prosperity in coastal provinces and among high-education and high-income groups, and a more notable impact on spiritual prosperity in coastal provinces among low-education and high-income groups. Therefore, it is essential to revitalize village collective operating assets, stimulate the vitality of the rural economy, and formulate and implement supportive agricultural policies tailored to the specific conditions of villages and rural households to achieve common prosperity.