Abstract: Urban fringe is the characteristic carrier connecting urban and rural space environment, and its development plasticity is strong, which is of great significance to study and analyze. The functional adaptation perspective provides an active updating idea for responding to the rapid development of urban space and balancing the demands of urban construction and development. This paper takes the small and medium-sized urban fringe areas as the research object, analyzes and summarizes its development characteristics and problems, focuses on the impact of the evolution of industrial, ecological and cultural functions on the spatial expansion of the fringe areas under the function adaptation, and combines the three development goals of optimizing the functional layout, improving the ecological base, and enhancing the regional characteristics. From the industrial upgrading, ecological reconstruction and cultural extension development strategy was proposed, at the same time with Xupu County in Hunan area planning design for the empirical case, through dynamic planning intervention, it is hoped to accelerate in situ urbanization, to lead the development and upgrade of district, to improve the overall quality of the city, and provide subsequent planning practice for small and medium-sized cities urban fringe.