The urban villages are not natural villages in common sense. They are the products of rapid urbanization. The existence of urban village is a special phenomenon during the process of urbanization in China, which influences the whole social development and plan of urban environment. Based on my previous study and knowledge, by investigating the current conditions of “urban villages” in Nanjing City, I introduce the existing problems of the villages and study on the relevant strategies to those problems in a logical way and also try to present the possibilities of potential transformations in the design proposal, in order to achieve the goal that solving the problems in urban village properly and supply possible strategies to coordinate different interest groups' profit, so that develop a harmony neighborhood. The review of literature helps to outline a framework of the research and prepares knowledge for the further study. Through the analysis of current situation in urban villages, the problems of urban villages in the city is assessed as well as the current need for solutions. The Game Theory is used as a thinking method to indicate and analyze the different actors' behaviors during the renewal process and result in the appearance of three renewal models in China. An urban village named "Hongshan" in Nanjing City is used as a major case to illustrate the issues with urban villages. Based on the above findings, a recommended concept design is proposed and is applied to Hongshan Village in the city of Nanjing. Also, based on former policy study, some specific strategies are recommended to apply to Hongshan Village.