Abstract: Service industry and the urbanization have the relations of mutual affect. This article utilizes the practical research technique to compare the relevance of service industry and urbanization before reform and open policy and after it. Before the reform and open policy, the second industrial development was very quick, but the service industry development was quite slow, resulting in a slow urbanized advancement. After the reform and open policy, the service industry development speed was quicker, with a result of a urbanized advancement acceleration in our country. Comparing the proportion of the production/employment of the second industry with the case in the service industry, the employment proportion of the service industry has high relevance with the urbanization rate. Specially, to the later period the industrial process, the urbanized advancement mostly depends on the development of the service industry. So we must depend on the development of the service industry to speed up the urbanization.