Industrial development is central to rural revitalization, driving ecological, cultural, economic, and governance advancements. Facing challenges like homogenization, lack of motivation, and branding issues, co-creation emerges as crucial, involving multi-stakeholder collaboration through co-planning, co-management, co-building, and co-sharing. Co-planning strategically aligns government, experts, local leaders, and villagers to set locally adapted development goals. Co-management ensures steady progress via joint governance among villages, enterprises, and social organizations. Co-building supports industrial transformation by engaging local talents and enhancing infrastructure, while co-sharing ensures equitable benefit distribution, promoting employment, income growth, and collective prosperity. Successful examples include Longshantang Village’s tourism transformation, Zijing Village’s environment-focused industry, Xiashan Village’s cooperative development model, and Xingfu Village’s talent-driven initiatives. Overall, the co-creation model enhances industrial upgrading, strengthens collective economies, and realizes inclusive rural development.