Abstract: Evaluation of land consolidation potential and distribution optimization of rural residential areas are the primary fields in rural residential area study. As a case of Jiayu County, Hubei Province, an evaluation model of land consolidation potential was established based on three factors of policy index, households’ willingness and spatial distribution, the realistic potential of land consolidation of rural residential areas in Jiayu County was analyzed. By spatial analysis of GIS, central villages, communications, slopes and land use types were analyzed in the quantitative optimization of spatial distribution. The results showed that the realistic potential of land consolidation in rural residential areas of Jiayu County was 326.35 hm2 from 2007 to 2020, consolidation areas and planning areas were well realized spatial optimization with the assistant decision of spatial analysis, land use efficiency and intensive degree of rural residential areas in Jiayu County were improved obviously, which can offer an academic basis for the rural residential land consolidation in practice.