A nutritionally balanced, environmentally friendly diet is a prerequisite for the coordinated and sustainable development of human health and the environment. Acquiring a balanced and environmentally friendly diet remains a great global challenge, especially in rural areas in developing countries. As an important indicator for urbanization, non-farm employment has been proven effective in promoting food consumption and diversity in rural areas. However, it remains to be verified how non-farm employment impact food structure, nutrition levels and environmental impact, especially the relationship between sustainability dimension and diet quality improvement needs to be explored. Based on the food consumption data of 996 rural households in China in 2019, the impact of non-farm employment on household food consumption, structure, nutrition levels, and carbon footprint was estimated. It was found that the dietary nutrition structure in rural areas of China is still unbalanced, with ample room for improvement. Non-farm employment will accelerate the adjustment of family dietary structure and the improvement of nutrition level, especially for low-income families. Meanwhile, it will not cause significant increase of food-related carbon footprint. Promotion of rural households’ non-farm employment and publicity health and nutrition knowledge are important ways to strengthen food structure and nutrition promotion.