As a new type of contract on the premise of realizing social achievements, social impact bonds can attract private investment and social participation, which provides new ideas and solutions for China’s targeted poverty alleviation. On the basis of introducing the basic principles of social impact bonds, this paper points out the agreement between social impact bonds and targeted poverty alleviation in the aspects of social demand, capital investment and government support. From the perspective of public and private cooperation and the cooperation of central and local areas, the four modes of the use of social impact bond tools in targeted poverty alleviation are analyzed. Based on the case study of the poverty alleviation social impact bond in China, the paper analyzes the problems and points out that the government should pay attention to in the targeted poverty alleviation.