Abstract: With the continuous promotion of rural collective property rights system reform, the new rural collective economy continues to develop and grow, playing an important role in the governance of relative poverty. Based on 1066 micro farmer' data from four counties in Hunan, Guangxi, and Guizhou provinces, this study comprehensively explores the impact and mechanism of participating in the new rural collective economy on relative poverty governance. It is found that participating in the new rural collective economy can significantly promote relative poverty governance. Mechanism analysis shows that the development of the new rural collective economy promotes relative poverty governance by increasing operating income, creating non-agricultural employment opportunities, and cultivating lasting family confidence in poverty alleviation, while property income has not passed the mechanism test. The heterogeneity analysis results indicate that regardless of whether farmers are monitoring objects, whether they are located in mountainous areas, or whether they have experienced natural disasters, participating in the new rural collective economy significantly promotes their relative poverty governance. For monitoring objects, farmers located in mountainous terrain, or those who have not experienced natural disasters, the impact effect is even more pronounced.