Based on the census and socioeconomic data in 2000 and 2010, using the fractal method, gravity model, and exploratory spatial data analysis （ESDA）, this paper studied the pattern and trajectory of urbanization in Shandong Province, one of the most populous provinces in China. The paper reveals several key characteristics of urbanization in Shandong Province, and the specific results are as follows. 1）The county level urbanization is evident： 53.5% urban population cluster in counties and county-level cities. Besides, the semi-urbanization phenomenon of rural migrants is also evident in this region. 2）The development of small and medium-sized cities is significantly quicker than large cities. 3）The network trend of cities in Shandong Peninsula Urban Agglomeration is prominent, but the ability of population gathering is still weak. 4）The urbanization pattern in Shandong manifests strong spatial disparity and significant spatial autocorrelation. The hotspots of urbanization are mainly clustered in three regions centers： Qingdao, Jinan, Yantai and Weihai; whereas the cold spots are mainly located in the western and southern regions of Shandong province. Based on these findings, the paper then proposes several policy suggestions.