Abstract: Xipo village in Liulin County is a typical representative of the traditional villages in the gullied terrain area of Western Shanxi Province. The village are in a radial layout. The village is built according to the changes of the mountain situation, forming a unique village pattern and residential building form. Based on the combination of on-the-spot investigation and theoretical method, the paper systematically analyzed the three parts of Xipo village,site selection and layout, overall village construction, courtyard construction and single building construction, from the macro, meso and micro perspectives and summarized the construction wisdom and characteristics of Xipo ancient village under the unique gully terrain conditions, and put forward the protection and development strategies of traditional villages, aiming to provide a new perspective and new methods for the protection and development of traditional villages in gully terrain areas.