Lifestyle choices and place of residence impact mortality risks and health outcomes. This study explores how lifestyle factors and leisure activities may mediate the urban-rural disparities in mortality risks using data from five waves of Chinese Longitudinal Healthy Longevity Survey with follow up till 2017-19 wave. A total of 32,753 participants 65 years or older were evaluated. The analysis included survival analysis, weighted Cox regression analysis, calculation of Percentage Excess Risk Mediated (PERM), which quantifies the mediating effect lifestyle factors and leisure activities have on mortality risk and sub-group analyses by age, sex, and education background. There were significant differences in mortality risk for town and rural regions as compared to city, although adjusting for demographics, lifestyle factors, and leisure activities reduced some of the “urban advantage.” The mortality risk in the base model was 12% and 16% higher for town and rural areas, respectively, while the risk in the fully-adjusted model was 9% and 12% higher for town and rural areas. Calculation of PERM showed up to 44% and 52% positive mediation effects by lifestyle factors and leisure activities in town and rural regions. These results can inform future policies and practices of lifestyle choices that can reduce urban-rural disparities in mortality risk in China for older adults.