Abstract: The integration development of manufacturing industry and service industry is a general trend in the late stage of industrialization and the transition period from industrial economy to service economy. The integration development of advanced manufacturing industry and modern service industry is the concretization and deepening of the integration development of manufacturing industry and service industry. The integration development of industry has important practical significance for the high-quality development of manufacturing industry in China at present. There are three ways to realize the integration development of advanced manufacturing industry and modern service industry: one is advanced manufacturing servitization; the other is the extension of modern service industry to manufacturing industry; and the third is the two-way deep integration, which ultimately forms a new industrial ecosystem dominated by platform enterprise. The paper analyses and measures the development level of industrial integration in China from these three aspects. At present, the main problems of industrial integration are: low degree and low benefit of integration; "big but not strong" manufacturing industry, the insufficient capacity of climbing and developing for the integration development along the value chain; for "self-circulation" service industry, which is the insufficient ability to support the development of advanced manufacturing industry; lack of core technology for platform enterprises, and the dependence on foreign countries for key components and core technology. In view of the current development situation and problems of the integration of advanced manufacturing industry and modern service industry, the paper finally puts forward some countermeasures and suggestions to promote the development of industrial integration and further promote the high-quality development of manufacturing industry.