Urbanization of the Tibetan Plateau is a part of the strategies to strengthen China’s national security shield as well as to enhance its national ecological safety barrier and the “water tower” of Asia. It also plays an irreplaceable role in protecting one of the last unspoiled regions in the world, ensuring that the “third pole” achieves modernization in step with the rest of China, and improving the lives of all ethnic groups that live in “roof of the world.” This study discusses in detail the distinctive drivers, development path, development goals, development dynamic, and green development model and strategy of the new type of urbanization in the Tibetan Plateau, which differs markedly from the rest of China. This author asserts that urbanization of the Tibetan Plateau should involve low-intensity development, cultural transmission, protection of land and borders, conservation of water resources, small concentrations and wide dispersion of the population, social inclusivity, and improvements to the environment that benefit the people, driven by domestic investment, tourism, services, and paired assistance. The plans for the region’s future development are as follows. In terms of the protection of land and borders, the Tibetan Plateau will safeguard China’s national security with fast and stable development and ensure sufficient populations inhabit border and rural areas. By 2035, the permanent population of the plateau will be 16 million, and the level of urbanization will reach 52.5%, with stability in the middle stage of urbanization, thereby comprehensively improving the quality of urbanization. In terms of green development, it is necessary to improve the quality of ecological products and the capacity and level of ecological services, accentuate local features and folk customs, promote culture, and encourage people to tend livestock in rural areas and live in towns, thereby creating beautiful cities and towns in the Tibetan Plateau. In terms of the small concentrations and wide dispersion of the population, the overall urban pattern will be “three clusters, four belts, and multiple nodes.” The “three clusters” are the Xining, Lhasa, and Qaidam metropolitan areas; the “four belts” are along the Qinghai-Tibet Railway, the Sichuan-Tibet Railway, the Ancient Tang (China)-Tibet Road, and border areas; and “multiple nodes” refers to major urban nodes and border towns. In terms of ensuring connectivity, the Qinghai-Tibet Railway was completed ahead of schedule, national security lines are being strengthened, and new infrastructure and smart cities are being built. Additionally, the land system of border cities is being reformed, a special zone for experimental border land reform is being constructed, and border towns are being prioritized in national strategies and territorial space planning.