Agricultural cooperatives are an important organizational form for promoting rural economic development. Their growth and expansion cannot be achieved without the active participation of rural household, and livelihood capital has a significant impact on rural household participation behavior. Based on 611 micro-survey questionnaires in the Tarim Basin, this paper uses the entropy method and Probit model to systematically study the impact of livelihood capital on rural household participation in agricultural cooperatives. The research shows that the number of rural household participating in agricultural cooperatives is currently relatively small. Education level, the number of family agricultural laborers, social networks, housing area, and cultivated land area have a significant positive impact on rural household participation in agricultural cooperatives, while government transfer income has a significant negative impact. In addition, the impact of livelihood capital on rural household participation in agricultural cooperatives is heterogeneous, and land transfer plays a positive moderating role in the process of livelihood capital influencing farmers' participation in agricultural cooperatives.