Based on the analysis of the concept of rural tourism, this essay summarized current status and achievements of Yangshuo tourism development in the past 30 years, and also comprehensively analyzed its advantages of location, resources, industry, market and infrastructure. In the interim, it pointed out problems of environment, administration, operation, information delay and distribution of interests. Furthermore, it discussed the sustainable development strategy of Yangshuo rural tourism, emphasized the importance of environmental protection and eco-effects in further development, as well as sorting out the relationship among different governmental departments, perfecting tourism mechanism, improving the training system for practitioners, enhancing service quality, strengthening advertising, promotion, image of tourism brand and research on more diverse tourist projects. Based on the analysis of the concept of rural tourism, this essay summarized current status and achievements of Yangshuo tourism development in the past 30 years, and also comprehensively analyzed its advantages of location, resources, industry, market and infrastructure. In the interim, it pointed out problems of environment, administration, operation, information delay and distribution of interests. relationship among different governmental departments, perfecting tourism system, improving the training system for practitioners, enhancing service quality, strengthening advertising, promotion, image of tourism brand and research on more diverse tourist projects.