Abstract: Under the trend of the worldly culture development, we should keep an open attitude and look into the future of traditional towns. From spatial composition to cultural connotations, on the revival of Chinese traditional urban culture in the current development context, we should not only succeed to the excellent traditional culture of China, but also base on the cultural characteristics of our own history and region to move forward together. Based on the Wuzhen Theatre Festival, one of the positive impacts of festival activities in Wuzhen Town, analyzes the three key elements of the operas structure, the performance space and the people, in order to find the inner relationship between the Wuzhen Theatre Festival and the Wuzhen Town. Lastly, through a practical study of the revival of traditional urban culture at the Wuzhen Theatre Festival, draws lessons, puts forward four cultural strategies related to the current revival of traditional towns, that is, enhancing the participation of local residents, enriching the local content, optimizing the content structure and expanding the scope of space, to try to figure out a sustainable development road suitable for the revival of traditional towns culture in China.