Abstract: Industrial revitalization is the primary task of China's rural revitalization, and the industrial development of traditional villages are facing greater challenges. With the phased transformation of industrial development, the space of traditional villages faces different challenges. Taking Nanshan Village in Qingliu County, Sanming City, Fujian Province as an example, this paper discusses the spatial evolution of traditional villages driven by industry. Since 2007, Nanshan Village has experienced the start-up, development, and integration of industries driven by capital and supported by the government, and is currently facing new challenges in development. This paper describes in detail the characteristics and interrelationships of the 'ecology-production-life space' of traditional villages driven by industry, summarizes the spatial dilemma brought by industry-driven spatial construction to traditional villages, analyzes the formation of Nanshan spatial dilemma from the perspectives of enterprise and market bias, government development intensity, and villagers' participation, and finally puts forward strategies for the current dilemma of traditional villages.