This chapter systematically reviews the government-led model of rural mutual aid elderly care in China, deeply analyzing its generative logic, institutional safeguards, and practical pathways. Against the backdrop of population aging, weakened family functions, and prominent supply–demand imbalances, the government innovatively builds village-based mutual aid “happiness homes” through top-level design, policy guidance, financial investment, resource integration, and institutional construction. By fostering multi-stakeholder collaboration, a three-tiered service network, standardized management, and incentive mechanisms, this model achieves fairness, cost-effectiveness, and sustainability in rural elderly care. It provides Chinese experience and valuable references for addressing rural eldercare challenges worldwide.