Micro-regeneration is a gradual renewal strategy that uses small-scale interventions to improve the quality of the living environment and local community, as well as spur industrial development. It is the small-scale interventions that have continued to make micro-regeneration a viable economic rural renewal approach for traditional village conservation and development. As such, in this work we explore potential micro-regeneration strategies and promotions based on assessments of public perception and preferences in an “unlisted” traditional village in China (i.e., an area with limited investment for conservation compared to “listed”, renowned traditional villages). We aim to identify the most perceptible modes of village transformation and industrial development for rural micro-regeneration strategies in the Huangshan traditional village of China. We also tested how the social character of respondents significantly affected their preferences in this regard. The public participatory mapping results illustrated a spatially clustered pattern made up of small spaces and individual buildings demanding micro-regeneration interventions. The survey based on 150 residents living around these sites disclosed that a unified repair approach subsidized by government and traffic condition improvements are the most recognized modes of village transformation, and the tourism is the most perceived and preferred method for industrial development. Significant differences between public perceptions and preferences of both village transformation and industrial development were identified corresponding to gender and income demographics, while village transformation perceptions change is dependent on age. Therefore, our study demonstrates evidence-based recommendations for active and effective rural micro-regeneration practices.