Narrow parking spaces pose difficulties in path planning and spot turning caused by sudden changes and discontinuities in path curvature. To address these problems, this paper investigates the performance of three path-planning algorithms and proposes a path-optimization algorithm. First, a narrow parking space is defined based on single-step parking using the arc-line combination parking algorithm. Second, to compare the arc-line combination algorithm, Hybrid A* algorithm, and particle swarm optimization parking algorithm with respect to different narrow parking spaces, a multi-objective evaluation function is proposed, including three evaluation indicators, namely, the path length, the number of positive and negative conversions of vehicle speed, and the smoothness of the path. Their performance is compared using a simulation conducted in MATLAB. With the same starting point and different parking space widths, the three algorithms are simulated to generate different planned paths. Then, the evaluation indices are obtained to compare the performance of the algorithms based on the multi-objective function, the values of which indicate the fitness of the algorithm in a narrow parking environment. The results show that the Hybrid A* algorithm is better than the others for narrow parking spaces. Third, to smooth the planning path, a path optimization algorithm based on the cubic B-spline curve and gradient descent is proposed. Finally, the results of a simulation conducted on the proposed algorithm and the Hybrid A* algorithm are provided: the average minimum curvature of the path was reduced by 0.005 m−1, and the path meets the requirements of the minimum turning radius constraint of the analyzed vehicle. The results show that the proposed algorithm can effectively eliminate the curvature mutation point and constrain the path curvature to meet the requirements of a smooth path.