Abstract: Small towns in the fringe of big cities, as the direct influence space of industrial function spillover of big cities, have always been the focus of academic research due to their special geographical location and complex development environment. Taking Matou Town in Huai'an City and Baohua Town in Jurong City as empirical cases, this paper summarizes the four realistic characteristics of small towns in the fringe of big cities, namely 'active resources of various elements', 'strong dependence on urban development', 'imbalance of urban functional spatial structure', and 'fierce game among various subjects'. From the perspective of the relationship with big cities, this paper summarizes and puts forward two development modes of small towns in the edge of big cities, namely 'completely dependent development mode' and 'relatively independent development mode'. Finally, on the basis of summarizing the development requirements of the new era, the paper proposes a new model for the development of small towns in the big rural-urban fringe— 'integration and interaction model', and from four aspects of 'comprehensively identify the regional functional value of the background elements', 'accurately plan the new driving force of urban interaction development', 'efficiently organize the integration and development of the whole spatial plate', and 'build an elastic development framework to respond to regional environmental changes', and discussed the implementation path of the 'integrated interactive mode', in order to provide reference for the planning and construction of similar small towns.