Abstract: The interactive relationship between urban fringe industrial parks and surrounding villages represents a critical issue in the synchronized advancement of new urbanization and rural revitalization. Flexible governance can effectively address the dualistic urban-rural contradictions, thereby promoting mutually beneficial and sustainable development between industries and villages. Starting from a governance perspective, this paper constructs a three-element analytical framework comprising 'governance entities, implementation mechanisms, and technological tools'. It assesses the issues prevalent in current urban fringe industrial zones dominated by rigid governance, such as 'the marginalization of villagers' rights, uneven distribution of land value appreciation benefits, and inadequate dynamic adjustments'. The study expounds on the connotation of flexible governance and proposes three major flexible governance approaches: a 'multi-element network' flexible governance system, a 'win-win of interests' flexible implementation mechanism, and 'flexible and adaptive' flexible planning methods. Furthermore, taking the Xiatanwei area in Xiamen City, Fujian Province, as an empirical case, this paper analyzes the evolutionary process of its industry-village relationship and the pathways to achieving flexible governance, with the aim of providing a theoretical framework and practical paradigm that can be referenced for the integrated development of industries and villages in China's urban fringe areas.