The key to promoting urbanization in China is to achieve urban integration of migrant peasant workers, and basic public health services may have a potential social impact on the subjective welfare of migrant peasant workers. In this paper, we use data from the China Migrants Dynamic Survey (CMDS) to study the impact of basic public health services on the urban integration of migrant peasant workers. The results show that basic public health services can significantly improve the probability of migrant peasant workers’ urban integration. The conclusions remain robust after mitigating potential endogeneity issues using the propensity score matching method (PSM), the CMP method, and robustness testing by replacing the explanatory variables with the reduced tail treatment. Further research found that the impact of basic public health services on migrant peasant workers’ urban integration is heterogeneous. The urban integration effect of basic public health services is more significant in male, high school and above, migrant peasant workers’ groups. The urban integration effect of basic public health services gradually increases with upgrading of the urban grade at the second-tier city and higher urban levels, and it also plays a vital role in the urban integration of the migrant peasant workers at the third-tier city and lower urban levels. Our findings also provide an evidence-based policy for China to promote equalizing basic public health services and a path to the urbanization of migrant peasant workers.