The new-type rural collective economy serves as a crucial foundation for achieving agriculture and rural modernization and promoting common prosperity in rural areas.This paper uses data from the 2020 China Rural Revitalization Survey to explore the impact of village trust level on the development of new-type rural collective economy. The results indicate that higher level of village trust significantly promote the development of the rural collective economy，and this finding remains robust after a series of tests， including instrumental variable modeling and alternative explanatory variables. Mechanism analysis shows that，compared with political participation，the enhancement of village trust primarily stimulates households to invest in collective business assets， thereby supporting the growth of the new-type rural collective economy. Heterogeneity analysis reveals that in villages with higher levels of income and marketization，the positive effect of village trust on collective economic development is more pronounced. In addition，compared with social trust，improvements in political trust at the villages level have a stronger promotiing effect on the development of rural collective economy. Therefore，it is recommended that strengthening institutional construction，continuously enhancing the level of trust in villages，safeguarding the interests of villagers and incentivizing household participation in collective economic activities are key to achieving sustainable development of the new-type rural collective economy.