Abstract: Urban land readjustment is an important method to improve the use efficiency of urban land. An introduction of land readjustment technique to a number of Asian developing countries was one of the most significant international collaborations in urban planning during the last century. As a developing country with the biggest population and scarce arable land resources, China is currently in a process of rapid urbanization because of its fast economic growth. To meet the increasing land requirement by the rapid urbanization, to stimulate efficient use of urban lands, and to reduce loss of productive farmland resources around cities, it needs appropriate technologies and strategy of urban land readjustments. This paper introduced experiences of urban land readjustment from abroad, identified problems in China's urban development, and then proposed suggestions for China to promote a rational urban land use, using land readjustment as an essential method. These included an establishment of a multi-level system (region-city-community) of urban land readjustment, and a monitoring and management system for urban land expansion based on modern technologies (GIS and remote sensing). It was also suggested that to supply land for housing the poor or low-income citizen should be placed on a high priority of the urban land readjustment. In addition, land readjustment should be closely combined with urban planning. Finally, suggestions were given on topics of land readjustment and sustainable urban development necessary for further study.