With the implementation of reform and opening-up policies, China's urbanization entered a period of rapid development, leading to land conflicts and environmental degradation. In 2019, the Central Economic Work Conference officially included urban renewal and old neighborhood renovation as crucial for people's well-being and health. Renovation of old neighborhoods in China, guided by urban renewal theory, has started relatively late. In recent years, there has been an increasing number of research findings and projects. We need to organize current practices and theories, analyze future improvements, and offer valuable suggestions. First, this article provides an overview and introduction of urban renewal and old neighborhoods, distinguishing them from traditional renovation forms. Then, it summarizes relevant literature, policy background, multidimensional renovation models, academic focus, and development. Next, by analyzing the renovation experiences and research findings of Western developed countries like the United States and the United Kingdom, as well as those of Japan and South Korea, which are part of East Asia's cultural sphere, it became clear that these nations have advanced experiences and outstanding achievements in improving reform systems and coordinating community governance. Finally, the analysis above shows that in recent years, the Chinese government and scholars have continuously explored policy formulation, multidimensional renovation, and residential participation. However, by reviewing domestic research findings and cases, it is clear that challenges remain in implementing old neighborhood renovations. Therefore, this paper argues that China's renovation of old neighborhoods requires a comprehensive legal framework, phased renovation systems based on their lifecycle, improved funding systems to promote the application of digital and ecological technologies, and strengthened subsequent safeguards. Currently, China's old neighborhood renovation is entering a phase of rapid development. By reviewing existing research findings and proposing improvement suggestions, we dynamically adjust the direction of old neighborhood renovations to support them.