Since China advocated the conservation of historical and cultural heritage and rural rejuvenation strategy, finding a balance between “protection” and “adaptive use” of traditional villages has become a core challenge for their sustainable development. In November 2023, the Department of Culture and Tourism of Shandong Province announced the list of cultural-ecological demonstration villages and towns in the province, in which Wanggezhuang Street stood out and was awarded the title of cultural-ecological town, becoming a unique representative of Qingdao. This study aims to realize the “harmonious coexistence of multiple interests” by comprehensively examining the current situation of the village through a combination of on-site research, literature analysis, in-depth interviews, and other research methods, supplemented by questionnaires and other means to build a multi-dimensional evaluation system to assess user satisfaction, and then systematically summarize the problems and their root causes of conservation and development. It aims to provide targeted optimization suggestions for village planning, promote the deep integration of traditional village protection and development, achieve a win-win situation for all parties, and contribute to the in-depth implementation of the strategy of rural revitalization.