As a key driver for rural economic transformation，the return migration of rural residents is gradually becoming a pivotal factor in the reshaping social structures and fostering endogenous rural development.Based on data from the China Household Finance Survey，this paper explores the impact of return migration on rural residents’ income and its internal mechanisms from the perspective of diverse options.The study finds that return migration of rural residents significantly increases their income，mainly through two diversity paths： promoting non-agricultural employment choices and suppressing conservative financial attitudes. Meanwhile，the impact of return migration on income shows significant heterogeneity based on household savings levels，while no significant differences are found regarding participation in unemployment insurance. Accordingly，it is proposed that incentives or support policies should be provided to unleash the income-generating potential of returning rural residents； support for non-farm employment should be strengthened，and diversified asset allocation should be encouraged to enhance the income-growing capacity of returning rural residents； and savings policies should be optimized，and the unemployment insurance system should be improved to build a solid defense for income growth among returnees.