Traditional Chinese villages, recognized as national heritage sites, are invaluable cultural assets. Since 2012, efforts have focused on their preservation, though issues remain such as prioritizing authenticity over usability and material over cultural elements. This paper adopts the Historic Urban Landscape (HUL) approach, emphasizing the integration of physical heritage with daily life to shift value assessment. The fundamental argument of this paper is that the HUL method can serve as a new tool for preserving the historical heritage and landscape of rural areas, particularly in the context of assessing and formulating preservation frameworks for traditional Chinese villages. Through the case study of Tangfang village’s new conservation plan, the research demonstrates that the value of traditional villages lies in the continuous interaction between daily activities and physical space, including landscape, functional, and spiritual dimensions. The study concludes that a preservation framework based on local residents’ daily lives ensures more effective heritage conservation and landscape preservation by addressing both material and human values.