Abstract: With the continuous advancement of urbanization, the shortage of resource elements in traditional villages has led to increasingly serious problems such as population loss, space wastage, and cultural inactivation. In recent years, the state attaches great importance to the development of traditional villages and actively promotes the centralized protection and utilization of contiguously protected areas. In view of the problems faced by traditional villages, this paper proposes the block-type protection in a timely manner to respond to national policy guidelines, and introduces the concept of smart contraction to guide the coordinated and stable development of traditional villages by analyzing the coupling relationship between block-type protection and block-type protection. The traditional villages in Xingtai City, Hebei Province are selected as the research object, and the current situation of protection and utilization and contraction of them are studied and evaluated, and the existing contradictions and dilemmas are found. From the perspective of smart shrinkage, it proposes district-type protection countermeasures for traditional villages and divides them into districts, builds a characteristic development direction according to the resource advantages of each district, and gradually promotes resource sharing and development linkage with surrounding villages in stages, focuses and stages, with a view to realize orderly inheritance of traditional village culture, ecological optimization and improvement, and steady development of industry. It provides a reference for the protection and utilization of traditional villages in other regions.