In the context of deepening the financial supply side reform, based on China’s provincial data from 2008 to 2019, this paper studies the relationship between inclusive finance development and industrial structure upgrading, reveals the direct effect and spatial spillover effect of inclusive finance on industrial structure upgrading, and explores the action path of direct effect with the help of intermediary effect model. The research shows that inclusive finance can promote the upgrading of industrial structure through three paths: human capital accumulation, promoting technological innovation and improving the efficiency of resources allocation, and can have a positive spatial spillover effect on the upgrading of industrial structure based on geographical and economic ties. Therefore, the establishment of a systematic long term policy guarantee system to promote the development of inclusive finance is conducive to promoting the upgrading process of industrial structure and promoting high quality economic development.