Abstract: Under the impact of rapid urbanization, regional characteristics and cultural recognition are particularly important for the protection and development of traditional villages. As a type of villages with strong regional cultural characteristics, the traditional villages with intangible cultural heritage inheritance are also facing various practical problems of protection and development. On the basis of sorting out the development status of such villages, this paper introduces the theory of cultural identity, and proposes that the protection and renewal of intangible cultural heritage inheritance traditional villages can be achieved by constructing cultural identity of different groups, optimizing the carrier of cultural material space, revitalizing culture industry and ensuring talent input. Taking Liuliqu Village in Beijing as an example, this paper analyzes its regional cultural characteristics and development dilemmas, and explores renewal strategies from the perspectives of cultural industry development, buildings’ function optimization, and public space systemization, in order to achieve the sustainable development of the village and provide empirical cases and references for the protection and renewal of such villages.