Abstract: research objective: Article empirical analysis impact of inclusive finance and Internet development on the optimization and upgrading of China""s industrial structure. Research methods: Using panel data of Chinese cities from 2003 to 2016, using fixed effect model, instrumental variable regression model and panel threshold model, etc. This paper studies the mechanism and causal relationship between the development of inclusive finance and Internet and the optimization and upgrading of China""s industrial structure. Research findings: It is found that the expansion of financial breadth (inclusive finance) is significantly promoting the upgrading of China""s industrial structure. The development of Internet plays a moderating and mediating role in this process, which is a gradual transition process with regional heterogeneity and threshold effect. The development of the Internet has expanded transaction boundaries and raised the level of financial inclusiveness. The coupling development of the two has nonlinear characteristics and significant network spillover effect on the optimization and upgrading of industrial structure. Research innovation: Based on more abundant urban data, the empirical test shows that inclusive finance is a new driving force for the optimization and upgrading of China""s industrial structure. And the Internet is an intermediary and effective way to empower. Research value: The results provide evidence for the transformation of financial development patterns and the implementation of inclusive finance. This proves that "Internet + inclusive finance" is the way to promote the optimization and upgrading of industrial structure. It is proved that Internet development is a powerful way to optimize and upgrade China""s industrial structure. While transforming the mode of financial development, it is also necessary to accelerate the technological innovation and upgrading of the Internet and strengthen the in-depth integration of the two. The empirical content has policy implications.