This chapter introduces the newly established right of habitation in China’s Civil Code as a type of usufructuary right. It defines the concept, outlines its main purpose of providing stable housing for specific groups (e.g., the elderly, divorced spouses), and clarifies its key characteristics: it is established by contract or will, requires registration, is generally gratuitous and non-transferable. The text acknowledges scholarly debate on its necessity and presents a comparative perspective with German law to illustrate potential areas for future legal development, suggesting the system may evolve to meet societal needs.