Rapid urban expansion has profoundly affected the structure and function of ecosystem services. However, reliable empirical evidence of the spatiotemporal impact of urban sprawl on ecosystem services remains scant. In this paper, we employ the dynamic spatial Durbin model to explore the relationship between urban sprawl and ecosystem services using prefecture-level panel data from 2000 to 2015. The heterogeneous impact of urban sprawl on ecosystem services and the effectiveness of urbanization management policies are further examined and investigated. Our main finding is that urban ecosystem services have significant spatial agglomeration and path-dependent effects. Urban sprawl in resource-based, noncoastal, and small cities has a greater negative impact on local ecosystem services and a positive impact on neighboring regions. Furthermore, the low-carbon city policy and ecological civilization construction policy significantly restrain urban sprawl, but the former has a limited effect on improving ecosystem service value. Policy implications are proposed to pursue synergies between urban development and ecosystem services improvement for China and other emerging countries.