Given the rapid development of internet and dramatic change it has brought to human life, this study examines the effect of internet use on well-being in rural China. Findings indicate that the act of engaging with internet and the increase in its usage frequency both have significant positive effects on well-being in rural China, whereas the effect attenuates with the increase of usage frequency. These results imply that internet use features diminishing marginal returns. In the sub-groups divided by education and age, the higher educated and the younger groups use internet more frequently. However, internet use significantly promotes well-being of the lower educated, the middle-aged and the elderly groups, and its effect on the higher educated and the younger groups is insignificant. A further analysis uncovers that internet use increase well-being through relieving loneliness. This study affirms the benefits of internet in rural China, but obsessive internet use could offset the benefits. Thus, the implication of using internet appropriately are highlighted.