Tourism urbanization, a product of social and economic development, is an inevitable social phenomenon accompanied by the ever-increasing development of tourism and urbanization.As one kind of pattern of urbanization, tourism urbanization appeared in developed Western countries since the 1970s.The paper points out that urbanization is the base of building a well-off society in an all-round way, and tourism urbanization as one mode of urbanization in turn paves the way for Chinese urbanization.Strengthening both the theoretical and empirical research on tourism urbanization is of great benefit to the healthy and constant development of China’s urbanization.Compared with the actual development of tourism urbanization, the theoretical research is relatively lagging behind and needs to be broadened and deepened.The paper makes a depth analysis of tourism urbanization in Lijiang City by the fieldwork and questionnaire.Five characteristics have been summarized: 1)On functions, Lijiang changes from industry and commerce town to tourist city step by step;2) On urban spatial structure, Lijiang develops with Dayan ancient town as the centre of gravity and assumes the "fan" shape;3) On urban construction land, the tourist land increases rapidly, large amount of urban green space is invaded and occupied;4) Having accelerated population urbanization process in Lijiang, tourism industry becomes main channel for residents to obtain employment in Lijiang City;and 5) With the rapid development of tourism industry, infrastructure construction has appeared to unconventional development in Lijiang.Under great background of tourism development in China, the mechanism factors of tourism urbanization in Lijiang composed of the resources comparative advantages of Lijiang, impetus from Yunnan Province government and Lijiang local government, participation of private economy and tourist consumption.