Abstract: In the process of social and economic structural transformation, a series of social contradictions happen in Yuncao ancient town, including the imbalance of economic and cultural development, the rapid change of man-land relationship, and the decline of cultural space. Therefore, it is pretty necessary to explore an innovative development mode from the perspective of service design that can promote the interaction of decaying ancient towns by exploring social resources, develop the potential of space value and lifestyle. This paper discusses the protection of ancient towns from the aspects of cultural construction, improving the status of citizens and enriching the protection mode.