Abstract: Town and village settlement system refers to an organic whole composed of towns and villages in a certain area, which has synergistic effect and self-organization, and its overall spatial pattern and detailed morphological characteristics are affected by many factors such as geography, transportation, economy, and society. Yunlong County of Dali is located in the minority mountainous area of western Yunnan Province. The unique geographical and cultural environment has created a variety of town and village settlement spaces. Studying on the spatial characteristics of the town and village settlement system can enrich the theoretical cognition of the town and village settlement system space in the mountain area, and provide practical basis for the planning of the town and village system in the mountain region. Based on the 2020 Yunlong Yearbook and image data, this paper uses digital methods to study the spatial pattern and morphological characteristics of the settlement system in towns and villages from multiple dimensions and scales. By coupling multiple features, the types are classified by towns and villages, and the spatial optimization strategies are discussed.