Abstract: In Yunnan Province, the comprehensive implementation of 'multi-planning integration' for practical village planning has laid a solid foundation for the high-quality development of rural living environments. However, during the planning and construction process, prominent contradictions in human-land relationships persist, particularly the conflict between land expansion that neglects spatial quality improvement and the issues of population hollowing and aging. This paper, drawing on the practical experience from the mid-term evaluation of the 'Cadres Plan Their Hometown Actions' in Yunnan Province, employs 'smart shrinkage' as a theoretical entry point, emphasizing that village planning in Yunnan should be grounded in national spatial planning, and the utilization of policy tools should be strengthened to ensure that rural development not only meets the actual needs of villagers but also utilizes land efficiently. It further advocates for a shift in Yunnan's village planning approach from a single-function classification to a multifunctional compatible classification. Planning methods should evolve from simple incremental planning to those that align with the specific characteristics of each village. The planning process should shift from the traditional rural elite governance model to a multi-stakeholder collaborative governance model, promoting widespread participation and joint decision-making among all interested parties. Additionally, planning content should transition from basic land use planning to more flexible and innovative design approaches. Through these transformations, the aim is to advance village planning into a new era of multi-stakeholder involvement and dynamic adaptation, deepening the application of the 'smart shrinkage' concept in village planning practices and providing novel insights for the transformation of village planning pathways.