Based on the panel data of 227 prefecture-level and above cities in China from 2002 to 2018, a panel linkage equation model is constructed to explore the bidirectional influence relationship between haze pollution and urban sprawl, and the results of the study find that, firstly, there is a bidirectional promotion of causality between haze pollution and urban sprawl. That is, PM2.5 not only has a significant positive effect on urban sprawl, but also urban sprawl has a significant positive correlation with haze pollution, which is further strengthened by adding the air flow coefficient instrumental variable. Second, the heterogeneity analysis yields that haze pollution has different effects on urban sprawl in different regions. Under the sub-regional samples, haze pollution and urban sprawl have a bi-directional significant negative impact relationship in the eastern region, none of the haze pollution and urban sprawl have a bi-directional significant impact relationship in the western region, but both the central region and the northeastern region have a significant positive impact relationship. Under different city sizes, haze pollution and urban sprawl in large, medium and small cities have a bi-directional significant positive impact relationship, and from the numerical size, the degree of influence of haze pollution on urban sprawl in large cities is greater than that in small and medium cities; while the degree of influence of urban sprawl on haze pollution in medium cities is greater than that in large and small cities. Accordingly, it is proposed that urban governance should be adapted to local conditions, focus on innovative technologies to reduce energy consumption, and utilize big data to manage cities.