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Traditional village is the most basic social space for the inheritance of China's traditional culture, and the social space for the sustenance of nostalgia culture. The traditional village covering valuable tangible culture and intangible culture is a non-renewable traditional cultural heritage. However, with the further development of China's urbanization, traditional villages and the traditional culture carried by traditional villages are gradually disappearing, under the influence of modern production method and lifestyle. How to balance the development of traditional villages with social development and progress has become a problem demanding prompt solution. Taking Mulu Village in Shangri-la City as the example, this paper analyzes the problems existing in the current status of traditional village conservation, and proposes the corresponding development strategies. [ABSTRACT FROM AUTHOR]