Agriculture, villages, and farmers are crucially important to China, which has transformed from an agrarian country to an urbanized country during the past four decades. However, villages which are situated at peripheral places and stay away from the positive impact of big city regions have generally declined due to depopulation, aging, and loss of industrial competitiveness. Historically, there have been a series of institutional innovations on rural issues. The chapter aims to comprehensively review China’s institutional innovation toward rural development and to examine how rural areas respond to these changes with increased resilience. Through in-depth analysis, this chapter expects to draw a clear connection between institutional innovation and rural resilience building in China and offers a practical route for rural revitalization strategy.