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The cultural and entertainment industry (CEI) actively promotes the economy. Xi'an is a comprehensive pilot city of China's cultural system reform. The characteristics of the staged changes and regional differentiation of the interaction between the CEI and urban development from 2000 to 2020 were studied by selecting seven districts in Xi'an. We used an expansion intensity index, equal-fan analysis, and coordination model. This analysis revealed the mechanism of the interaction between the CEI and urban development. We found that both the CEI and urban development mainly expand to northeast and southwest, while the expansion synchronicity of the CEI and urban development differs in various directions. The coordination between the CEI and urban development shows a pronounced "center-edge" feature. In other words, the closer to the city center, the stronger the coordination between them. The city guides the layout of the CEI through the agglomeration of elements. Meanwhile, the CEI promotes the reconstruction of urban space in turn, through its production. The study's findings may enrich the theory of coordinated development of the CEI and urban development. Furthermore, it provides a scientific basis for formulating the layout and development patterns of the CEI in Xi'an and other developing cities worldwide. [ABSTRACT FROM AUTHOR]