This paper analyzes the impact of income distribution gap on consumption demand from a theoretical view,and draws the conclusion that there is an inverse relationship between income distribution gap and consumption demand.Then,the paper finds that the existing widening income distribution gap in China has a negative impact on consumption demand,but this is not the key factor for the insufficient consumption demand because of the low level of per capital income.At last,it suggests that governments should improve the income level of entire residents and adjust income distribution structure simultaneously. This paper analyzes the impact of income distribution gap on consumption demand from a theoretical view, and draws the conclusion that there is an inverse relationship between income distribution gap and consumption demand. Chen, the paper finds that the existing widening income distribution gap in China has a negative impact on consumption demand, but this is not the key factor for the depletion demand because of the low level of per capital income. At last, it suggests that governments should improve the income level of entire residents and adjust income distribution structure simultaneously .