Abstract: The renovation of old residential areas in urban villages is of great significance for improving residents' quality of life and optimizing urban functions. However, it faces numerous challenges during implementation, making it urgent to systematically sort out these issues and propose targeted solutions. This study combines literature research with case studies to systematically identify the difficulties in renovation according to the project implementation stages. Taking the renovation project of an urban village in a commercial district of Guangzhou as a case, it analyzes feasible countermeasures to address the difficulties at each stage.The research finds that in the early stage of the renovation project, there are problems such as difficulties in negotiating the renovation plan and challenges in reaching a consensus due to the diversity of stakeholders. In the middle stage, challenges include a single channel for fund-raising, low coordination efficiency among multiple subjects, complex construction organization, and significant interference with residents' daily lives. In the later stage, there are shortcomings such as ambiguous acceptance criteria and the lack of a follow-up maintenance mechanism.To address these difficulties, the case project has put forward corresponding solutions. In the early stage, the main renovation company and the land development center collaborated to formulate a detailed demolition compensation plan, reducing interest disputes. In the middle stage, a regional rolling development model was adopted to balance capital needs, and a "government-enterprise" collaborative promotion mechanism was established to improve efficiency. In the later stage, a professional development and operation company was introduced to plan a long-term operation scheme in advance, solving the problem of the lack of a follow-up maintenance mechanism.The introduction of professional development and operation companies can solve the problem of insufficient later-stage maintenance mechanisms; the implementation of preferential credit policies can alleviate the capital pressure in the middle stage; the refinement of demolition compensation standards helps resolve negotiation conflicts in the early stage; and an effective multi-stakeholder collaboration mechanism can run through the entire project cycle to improve implementation efficiency. The combined application of these strategies can achieve a win-win situation in both economic and social aspects for the renovation of old residential areas.