As an important agricultural region for grain, cotton, and fruit production in China, Xinjiang faces severe constraints on the sustainable development of modern agriculture due to issues such as drought-induced water scarcity, soil salinization, and the extremely uneven spatiotemporal distribution of water resources. Therefore, it is necessary to improve agricultural water conservation and water resources utilization efficiency, so as to ensure agricultural production, safeguard ecological security, and promote sustainable socioeconomic development in Xinjiang. This paper analyzed the current status of water resources and its utilization in Xinjiang, examined the progress and challenges in agricultural water conservation, and explored existing problems. In the context of the new national positioning and requirements for Xinjiang’s agricultural development in the new era, we proposed a series of countermeasures and recommendations, such as functional renovation of plain reservoirs, implementation of evaporation reduction and loss mitigation projects, farmland salt reduction and water conservation initiatives, promotion of saline water resources utilization, development of biological water-saving technologies, advancement of modern irrigation district construction, integrated development of comprehensive water-saving measures, and establishment of robust agricultural water conservation service systems. These recommendations are aimed to provide a strong support for modern water-saving agriculture, high-efficient water resources utilization, and sustainable agricultural development in Xinjiang.