The graduation project titled ‘renaissance of cultural identity-historical districts regeneration of Beijing inner city’ aims at researching the question about the role of cultural identity in the historical cities, specifically it is about testing and investigating proper ways to regenerate the historic districts in inner city of Beijing, in order to make it match the contemporary urban development. The research started from giving the definition of cultural identity in Beijing inner city and investigate current situtaion for these constituent elements.I have stated that those elements are under threats under market oriented development, both of the spatial and social quality are declined. Cultural identity has been evicting from historic city core under modernization and marketization. Then my analysis focus on finding out the conflict between preserve historic identity in city center and modernization under influence of market. Strategy goal was to activating cultural identity and strengthen urban vitality. Meanwhile, social mix and vitality will be rehabilitated.Economic sustained urban regeneration is also a key point in Beijing inner city regeneration, it is inversgated in the graduation project as well. As most of the house property in Beijing inner city are belonging to government, it gives the advantage for me to propose a new strategy for government to regenerate historic districts. The whole process of regeneration can be seen as a process of urban management. Instead of giving all the redevelopment to market, new housing institution can be set up to do the management under government supervision.