Xishuangbanna, located in southern Yunnan, China, is a vital tropical rainforest reserve supporting rich biodiversity, including the endangered Asian elephant (Elephas maximus). Increasing human activities, such as urbanization and agricultural expansion, have degraded habitats and intensified human–elephant conflicts, adding to the challenges of conservation. This study integrates habitat quality assessment and conflict risk analysis using the InVEST model across 2128 villages, considering land use and habitat threats like cropland and roads. The model reveals significant overlap between high-conflict zones and low-quality habitats near key reserves, underscoring the need for targeted conservation strategies. We propose establishing Ecological Source Areas (ESAs) to protect high-quality habitats and Ecological Restoration Zones (ERZs) to improve ecological conditions in low-quality, high-conflict zones. ESAs are essential for providing continuous ecosystem services and ensuring ecological security, while ERZs focus resources on areas with high conflict risk that urgently need restoration. Additionally, we recommend creating ecological corridors to connect fragmented habitats, enhance connectivity, support herd interactions, and reduce conflicts by expanding elephants’ safe roaming range. This integrated framework emphasizes habitat protection, ecological restoration, and conflict mitigation while accounting for human dynamics to support sustainable conservation. Reducing overlap between human and elephant activities remains a key objective. Future research should refine these models with more detailed data and extend their application to other regions, focusing on adaptive management and monitoring to address evolving ecological and human dynamics.