Abstract: Facing the strategic needs of rural revitalization, combining the institutional analysis and development framework to analyze specific problems in the process of rural land circulation can promote the sustainable development of rural areas. Taking Lianfu, Lichang and Wangshi where land circulation are relatively frequent as examples, starting from the external variables in the IAD framework, combined with the results of field investigations, we analyze the problems that occur in rural land circulation. It is found that in the process of land circulation, the destruction of the natural attributes of agricultural land may cause the circulation market fluctuation. Based on the local social and cultural background, the local order weakens the contract spirit formed by the relevant provisions. The incoherence of aggregation rules leads to the inconsistency between the circulation conditions possessed by farmers and the actual situation, resulting in the barriers of circulation information. The asymmetric information rules lead to difficulty in obtaining circulation information. The imperfect location rules lead to a lack of cooperative function, and the positive effect is not obvious. Through strict control of the circulation process, a rural land circulation process of ‘land outflow-intermediary service organization-land inflow’ can be formed, and agricultural cooperatives can be encouraged to connect with formal financial institutions such as banks.