The pattern of ethnic inter-embeddedness serves both as a mirror of the current dynamics of inter-ethnic relations and as a framework shaping their future evolution. This study employs ArcGIS and GeoDetector, in combination with demographic and socio-economic datasets, to investigate the spatial transformation and underlying drivers of ethnic inter-embeddedness in Sichuan Province between 2000 and 2020. The findings indicate that socio-economic advancement has played a significant role in facilitating the spatial embeddedness of diverse ethnic groups within the province. Specifically, economic modernization—marked by the expansion of the secondary and tertiary sectors—together with the development of educational systems and the improvement of transportation infrastructure, emerges as the most influential set of factors promoting spatial interweaving among ethnic communities. The study concludes that, with the continued socio-economic progress in Sichuan, the spatial configuration of ethnic groups is likely to evolve toward deeper inter-embeddedness, thereby providing enduring spatial platforms for inter-ethnic contact, interaction, and the enhancement of mutual recognition and understanding.