Abstract: In order to enhance residents’willingness to pay for green renovation in old communities and promote the sustainable progress of such renovation, this paper, based on a survey of residents in old communities in Kunming City, Yunnan Province, conducts an analysis of the influencing factors and exploration of the mechanism underlying willingness to pay from the micro perspective of social psychology and the perspectives of multidimensional perceived value and social interaction. The results indicate that: 1) Residents’psychological cognition has a significant positive impact on their willingness to pay. 2) Multi-dimensional perceived value plays varying intermediary roles between residents’psychological cognition and their willingness to pay. 3) Social interaction plays a positive moderating role in the influence of residents’psychological cognition on their willingness to pay. 4) There are significant differences in willingness to pay among residents with different demographic characteristics. This study is conducive to revealing the mechanism for improving residents’willingness to pay for green renovation, deepening the understanding and support of relevant stakeholders for green renovation in old communities, facilitating the lowcarbon and green transformation of old communities, and providing reference for governments to formulate guiding policies for urban renewal and reconstruction.