Abstract: Based on experiential learning theory and attribution theory, this study constructs a moderated mediation model to explore the direct and indirect impact of failure experience on new business performance. Along with a dataset from 235 Chinese rural entrepreneurs who failed previously, the Hierarchical regression analysis and Bootstrap test method are utilized to verify the direct impact of entrepreneurial failure on new performance, the mediating effect of learning from failure, and the moderating effect of failure attribution. The results show that: (a) there exists an Inverted-U shape relationship between entrepreneurial failure and new venture performance; (b) learning from failure plays a positive mediating effect; (c) the attribution of failure plays a significant moderating role on learning from failure; (d) although the moderating effect of failure attribution on new performance is not significant, the moderated mediation effect is statistically significant. Findings of this study not only extend the research of entrepreneurial failure, but also provide practical guidance for rural entrepreneurs, and offer important policy implications for policy makers.