Rapid urbanization makes the spread of urban culture that poses a challenge to the protection and development of ethnic village. How Ethnic villages to solve the problem under urban context? This paper takes Peng village of Hubei province as a case, and is intended to probe into the aspect about tourism development with the methods of field investigation and in-depth interviews and depth analysis. The study finds: First, ethnic villages often are areas with tourism resource endowments, and the villagers generally have desire to develop tourism industry. Development is not the opposite of protection, and village can realize the targets of living protection of resource and development of village economy by tourism development. Second, at present, due to the remote location and backward economy, the tourism here developed desultorily and faced two major problems-first, the villagers reasonable demands are not met; second, the protection and development of traditional culture here is in trouble. The authors propose: ethnic villages should adopt the model of tourism development of "eco-oriented, community participation, rational development and highlighting unique features".