Panzhihua city is a typical mountain resources city. This paper selects its panel data of urban land use and social-economy from 1986 to 2016 and uses expansion index, shape index, integration, spatial efficiency based on ArcGIS and SPSS to study the evolution process of industrial spatial expansion and urban spatial morphology during Panzhihua's overall constructing period and coordinated developing period, clarifies its temporal features and explores the correlation mechanism between industrial spatial expansion and urban spatial morphology, offering theoretical supports for Panzhihua's urban transformation. Panzhihua's industrial expansion and urban morphology show the similar developing stages. Industrial structural adjustment directly drives urban spatial evolution, and industrial'spatial expansion leads to evolution in urban spatial structure from sole center to multiple centers. Industrial clustering development increases the intensive use of urban spatial structure. This paper presents suggestions for Panzhihua on optimizing industrial carrying space to form intensive and mountain-water ecological urban space use mode, boosting industrial cluster to increase urban concentrating capacity and spatial efficiency, adjusting industrial structure to help form the urban spatial framework of multi-centers and network.