Abstract: Industrial transformation is an urgent need for the sustainable development of mining villages and towns, and village residents, as participants and beneficiaries of industrial development should receive more attention to their perceptions of industrial development. At the same time, research on rural industrial development is expected to go further in terms of perspective and methodology. Therefore, this study selects Miaofeng Mountain Town in Mentougou District, Beijing as the study area, and uses structural equation modelling (SEM) based on field questionnaire data to understand the characteristics of local residents' perceptions of industrial transformation and to explore the influencing mechanisms of the factors related to industrial transformation. The results of the questionnaire show that the mean value of respondents' overall satisfaction with industrial transformation is 3.581, which is higher than the median value of 3, indicating that local residents are basically satisfied with industrial transformation. The results of the structural equation analysis show that the living dimension has the greatest influence on residents' perceptions of industrial transformation, compared to the production and ecological dimensions, which bring less influence. Income satisfaction, infrastructure and waste and sewage disposal are the most influential factors under each dimension. The results of this study can provide a basis for managers to make decisions on the construction of future industrial development.