Abstract: In the context of urban and rural integration, historical villages in urban fringe areas are important carriers for coordinating and optimizing urban-rural relations and enriching urban and rural spatial types and cultural connotations. However, due to the impact of urbanization, there are problems such as blind functional transformation and no obvious characteristics of villages. Therefore, this paper constructs a potential evaluation system for historical villages in urban fringe areas to clarify the value characteristics of historical villages and the feasibility of transformation. Taking 10 historical villages in Tuanjie Street, Kunming City, Yunnan Province as examples, the paper put forward planning and guidance strategies for graded/classified transformation development,inter-regional complementary development, as well as improvement of security guarantee mechanism, providing scientific ideas and basis for the transformation and development of historical villages in urban fringe areas.