China’s rapid urbanization and evolving agricultural practices have driven significant changes in cultivated land utilization, characterized by non-agriculturalization (NA) and non-grain utilization (NGU) transformation. Understanding the spatial patterns and driving mechanisms of these transformations is critical for formulating effective cultivated land management and protection policies. Previous studies have treated the non-agriculturalization (NA) and non-grain utilization (NGU) of cultivated land as distinct phenomena with no correlation. Therefore, this study constructs a theoretical framework to explore the correlation between NA and NGU and examines their interaction patterns using Ezhou City in China as a case study. Spatial econometric models and multinomial logistic regression analyses reveal distinct trade-offs and synergies between NA and NGU, which are shaped by locational, socioeconomic, natural, and policy factors. Urban areas exhibit higher NA rates due to economic development, while rural areas favor NGU for improved land use efficiency and profitability. Suburban zones demonstrate a coordinated transformation, where both processes coexist synergistically. The findings, which are also verified by another two case study areas, highlight the existence of spatial correlations between NA and NGU transformations of cultivated land. They also underscore the necessity for region-specific policies to balance food security with economic growth and dietary transformation. This study helps to elucidate the complex mechanisms underlying different types of cultivated land use transitions and offers new perspectives for the formulation of cultivated land use and protection policies for global cities.