This study examines the challenges of balancing cultural preservation and tourism development in traditional Chinese villages, using Wolong Ancient Fishing Village in Yunnan as a case study. The research aims to identify effective strategies for sustainable restoration by integrating cultural heritage conservation with socioeconomic needs. Methodologically, it combines historical document analysis, field surveys, and semi-structured interviews with stakeholders (residents, tourists, and developers). Findings reveal that while the village’s spatial planning and government-enterprise collaboration framework are well-structured, its restored buildings lack immersive cultural experiences, functioning merely as aesthetic “shells.” The study concludes by proposing actionable measures to enhance interactive cultural displays, optimize functional spaces, and strengthen community participat...