Abstract: China has a large number of small towns with unique geographical features, natural endowments, and cultural resources. They carry many precious natural or historical and cultural heritages, which are of great significance to protection and inheritance of China's urban and rural historical and cultural heritages. This paper selects Wen'anyi Town, Yanchuan County, Yan'an City as an example, and explores the protection and inheritance of cultural heritage of this town from three aspects:constructing cultural context, coordinating cultural environment and highlighting cultural themes. It is believed that the cultural inheritance of small towns should first focus on overall perspective, establishing a coherent cultural context in the region, so as to build the foundation of a systematic protection and inheritance system. Secondly, based on the thought of full coverage of space and elements, protecting the landscape pattern and natural resources of small towns, so that coordinating the reciprocal relationship between the village environment and cultural inheritance. Lastly, the town should insist on promoting the use of resources, combine cultural resources, organizing space construction, highlighting cultural characteristics with cultural venues and elements as windows, so that making cultural heritage a distinctive symbol of the town. This research concludes that we should not only continue the culture from the perspective of the whole region, but also enhance the value from the perspective of the whole factor, so that to promote the development and protection of cultural resources in urban construction to achieve the purpose of cultural inheritance.