Abstract: As we know, sustainable agriculture and rural economy development (SARD) is a essential precondition and foundation for mankind sustainable development of economy and society. At present, study on SARD has been the focused point in the world. Study about mechanism and mode on oasis sustainable agriculture and rural economy development is key part of study on sustainable agriculture and rural economy development. Turpan basin, located in the east part of Xinjiang, is the most typical oasis area that is very famous for its climate of dry and heat and strong wind, then it is called fire region and wind storeroom". Talking of oasis agriculture, this area, teeming with many crops including cotton and grape and melon, is more typical. Having made a great progress in agriculture and rural economy since liberation, this area is also facing high pressure and challenge for its sustainable development. So taking Turpan basin as one case, studying mechanism and mode on oasis sustainable agriculture and rural economy development is a pressing work. Trough analyzing the situation of Turpan, the paper pointed out that there are some factors which influence the system of agriculture and rural economy development, mainly including government macro-adjustment factor, traditional institution and system, market factor, science and technology factor, peasant household behavior factor. It points out that at present institution factors is the most important one to change agriculture production structure and promote rural development in Turpan area. The change of agriculture production structure and rural economy during our government taking reform and open policy is the best witness. With deepening reform and enlarging open in China, the market system shall be set up gradually, then market factor will bring into playing more important role in promoting sustainable development of agriculture and rural economy in this area. Meanwhile effects on agriculture and rural development for science and technology factor , peasant household behavior factor playing were discussed. Mang data were used in analyzing. After analyzing these factors, a frame graph about relations among factors and action mechanism was drawn(Fig.1).At present, because macro-background of agriculture and rural economy development has taken place a great change, agriculture business management is inevitable trend. In Turpan basin, market agriculture + resource intensive use and process oriented type" will replace the old mode.Lastly, discussing and summing up the experience of local people's practice on developing ecological agriculture, the paper brought out one model named grapery ecological farm in arid area, which embodies the three main targets of SARD (Fig.2), namely well nurture and warm cloth, becoming rich for farmers and utilizing resources and environment for ever.