Urban regeneration, as an important way to enhance urban sustainable development capacity, is advancing at a high speed in China. However, urban regeneration involves various stakeholders, and there are frequent conflicts between these stakeholders due to the vast differences in their interests. When conflicts among stakeholders are not effectively controlled, they can have serious negative social and economic impacts, such as increased pressure on the government to maintain stability, increased costs to developers and reduced willingness of property owners to participate. These are all critical factor affecting the sustainability of urban regeneration. Therefore, this paper explored the mechanism underlying stakeholder conflict conduction in urban regeneration. Next, a literature review and case study were conducted to identify key conflict factors. Then, the factors of stakeholder conflict were assessed using questionnaire survey. Finally, the structural equation model (SEM) was used to analyze the pathways of stakeholder conflict conduction in urban regeneration; and 35 conflict conduction paths were found. Based on Pareto’s Law, 7 of the 35 stakeholder conflict paths were identified as critical paths with coefficients between 0.245–0.364. Empirical results revealed that different types of conflict factors have different impacts on stakeholder conflict conduction, among which interest distribution and stakeholder coordination were the critical factors to be considered. The findings provide alternatives Social-Based Solutions (SBS) for resolving stakeholder conflicts and provide practical guidance for integrating stakeholders, which is important to ensuring the sustainability of urban regeneration.