This paper discusses existing problems in protecting rights and interests of land-expropriated farmers during urbanization, such as those farmers failure to obtain benefits from land increment, difficult employment and imperfect social security system. Reasons for losses of farmers’ rights and interests mainly include defects in land management and expropriation system, and uncoordinated development of urbanization and industrialization. However, the basic reason is urban and rural dual economic structure. On the basis of these situations, it puts forward solutions to protecting rights and interests of land-expropriated farmers: let land-expropriated farmers share land-increment benefits from land marketization; establish effective employment security system and perfect social security system, to make land-expropriated farmers share supply of public goods equal between rural and urban areas, and realize the inclusive growth balancing urban and rural areas.