Abstract: As the start and origin of urban development, old towns have their unique spatial characteristics and cultural value. However, most old towns face the dilemma of disappearance of spatial characteristics and fragmentation of cultural heritage. Old towns need to coordinate the relationship between development and protection. This article takes Ming-Qing Dynasty Historic Area of Xianyang City as an example to conduct spatial research. Firstly, it systematically sorts out the pattern, texture and memory genes of Ming-Qing Dynasty Historic Area from the perspective of spatial genes. The pattern genes of the district include the site selection, the special city shape, and the ancient methods of designing cities. The texture genes of the district include the location of important buildings, the system of streets and the unique courtyard mode. The memory genes include the relationship with Wei River, the memory of prosperous business and the scene of numerous temples. Then, it summarizes the development dilemma of Ming-Qing Dynasty Historic Area. It is manifested in three aspects:the change of spatial pattern, the destruction of the streets texture, and the decline of cultural memory. Finally, it proposes the development strategy of Ming-Qing Dynasty Historic Area from three aspects:restoration of the overall pattern, continuation of streets texture, and cultural memory inheritance. It is hoped to promote the high-quality development of urban space in Ming-Qing Dynasty Historic Area and provide useful reference for the spatial development of historical and cultural towns in the new era.