China has entered into urban society, the main task of the future urbanization has been turned into optimize the structure and improve the quality, while the new urbanization is the only way to achieve this goal. On the basis of deeply understanding the connotation of the new urbanization, the evaluation system of new urbanization was established in the article, which was composed of eight subsystems: population, economy, space, society, ecological environment, lifestyle, urban-rural integration, innovation and R&#x00026;D. The weight of index was worked out with the entropy method to improve the objectivity and reliability, and to measure the development level of the new urbanization of the 17 prefecture-level cities in Shandong Province. It was found that there were obvious regional differences in the development level of the new urbanization of the 17 prefecture-level cities: the comprehensive development index of the new urbanization in Jinan (60.26) is the highest, while which in Heze(18.16) is the lowest. The range and standard deviation are both relatively large. On the basis of the analysis, the 17 prefecture-level cities were divided into five types through clustering analysis. The distribution of the development level of new urbanization in the whole province demonstrates that the high level cities are in east and north, and the low are in west and south. The development level of the new urbanization in Jinan, Qingdao, Weihai and Zibo were much higher than the average level of the whole province, which belongs to the high level area of the new urbanization. The development level of the new urbanization in Dongying is relatively high, especially the level of economic urbanization. Yantai and Laiwu belong to the middle level area of the new urbanization, the development level of new urbanization in the two cities were slightly higher than the average level of the whole province. The relatively low area of the development level of new urbanization includes Taian, Binzhou, Rizhao, Weifang and Zaizhuang . Jining, Linyi, Dezhou, Liaocheng, Binzhou and Heze belong to the the low level area of new urbanization. In these cities the development level of new urbanization were far below the average level of the whole province, which were related to the backward economy and the low level of industrialization, and the development level of every subsystem in these cities was also low. Grey correlation analysis was used to further explore the degree of influence of each index on the development level of the new urbanization. The results showed that the new urbanization of Shandong Province was seriously affected by the traditional urbanization, the comprehensive development index of the new urbanization was closely related to economic urbanization, space urbanization, social urbanization and population urbanization. It needs to be strengthen the construction of lifestyle, ecological environment, urban-rural integration, innovation and R&#x00026;D, and promoting the quality of the new urbanization should be pay more attention to.