Abstract: The concept of urban-rural equivalence emphasizes that rural areas are independent spaces with complementary functions and equivalent values to cities, and its realization relies on the market-oriented pricing and circulation of rural land. At present, a large number of idle homesteads have restricted the livability, industrial subjectivity and cultural identity of rural areas. Taking Yi County, Jinzhou City, Liaoning Province as the empirical case, this paper constructs a three-dimensional analytical framework of ‘space-tenure-value', and systematically analyzes the distribution characteristics and formation mechanism of idle homesteads in mountainous and hilly areas, as well as the implementation bottlenecks of the ‘Separation of Three Rights' reform in the links of right confirmation, circulation, pricing and income distribution. The results show that: 1) The idle homesteads in Yi County present significant spatial agglomeration and differentiation, with the hollowing rate of villages in the eastern mountainous area exceeding 40%, forming a high overlap between resource-rich areas and institutional constraint areas; 2) The institutional bottlenecks are manifested as ambiguous tenure, closed circulation, missing pricing mechanism and unstable income expectation, which jointly hinder the release of land value. Oriented to the goal of urban-rural equivalence, this study proposes that rural land value needs to complete three transformations: from security resource to market asset, from single residential function to composite function, and from individual dormancy to global planning. On this basis, it constructs characteristic paths including right confirmation and empowerment, classified disposal, global planning, institutional innovation and the mode of ‘village-enterprise cooperation + sports empowerment', which provides practical reference for the integrated development of ‘agriculture-culture-sports-tourism' in mountainous and hilly areas of Northeast China.