Abstract: Objective This project aims to analyze the use efficiency of poverty alleviation funds of the three prefectures in southern Xinjiang in order to provide reference for adjustment of poverty alleviation policies direction and improvement of poverty alleviation molds.Method The quantitative analysis method of variable intercept panel model was used to study the influence of poverty alleviation funds on the indexes such as per capita income,the per capita output value of farmers and herdsmen,the rate of industrialization and urbanization,and at the same time,the regional transmission effects were also calculated.Result Every one yuan increase of per capita poverty alleviation fund increased the per capita income of farmers and herdsmen by 4.40 yuan,the industrialization rate by 0.023,6;,and the urbanization rate by 0.02;.In terms of the regional transmission of poverty alleviation funds,Hotan had a greater impact on Kashgar and Kezilsu Prefecture.Conclusion Poverty alleviation fund positive benefit is remarkable,which has obvious promoting effect on the per capita income of farmers and herdsmen,on industrialization rate and urbanization rate.However,urbanization is the biggest factor affecting the per capita income and the per capita output value of farmers and herdsmen,followed by the industrialization.Thus,poverty alleviation work of the three regions in southern Xinjiang must attach great importance to the role of urbanization and industrialization.