Bogda Nature Reserve is a World Heritage Site (WHS) in Xinjiang, China. Potential conflicts between community development and heritage conservation are important topics to study and may have an impact on the sustainable development of heritage sites. In this study, we conducted a survey with the community residents of the Bogda Nature Reserve to examine major potential conflicts arising from local residents' perceptions regarding conservation policy and its interventions. The results indicated that the local community supports heritage conservation and development, but they expressed negative attitudes towards their present living conditions, especially due to policy-induced loss of benefits. Through the research, three major conflicts were identified: (1) a divergence in residents' awareness of the WHS designation and the conservation policy (grazing restriction policy); (2) negative changes in living conditions compared to before the WHS designation; (3) the degradation of well-being caused by tourism. In addition, expectations from residents were combined to assess the implications for the present situation and advise on conservation plans to facilitate sustainable management in Bogda.