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This study introduces and empirically tests a dynamic model of urban-rural cultural capital conversion, extending Bourdieu's foundational theory beyond the reproduction of inequality to identify the specific institutional mechanisms that enable rural students to overcome structural disadvantages in higher education. Employing a sequential explanatory mixed-methods design, the research analyzes survey data from 573 university students using structural equation modeling (SEM) and integrates these findings with in-depth interviews with 24 students from diverse backgrounds to test and deepen the understanding of the relationship between cultural capital and student outcomes. The results confirm that while a significant cultural capital gap disadvantages rural students, this gap can be effectively bridged. The model reveals that inclusive educational resources, supportive social networks, and targeted policy interventions are the core mediating mechanisms that drive successful cultural capital conversion, thereby improving academic performance and employment prospects. This research provides actionable, evidence-based guidance for university leaders and policymakers to design effective strategies that promote educational equity and enhance social mobility for an increasingly diverse student body, while the proposed conversion model also offers a valuable comparative framework for understanding and addressing educational inequality in other national contexts.