Based on the analysis on the characteristics of human settlement of urban villages in Wuhan,the paper examines the special urban social functions of urban villages during their self-evolution process.The totally market-led mode of urban village renovation has neglected existing positive social effects and failed to provide fair development opportunities for disadvantaged groups,and it will hinder the construction of a diversified and vigorous urban socio-ecological environment.In view of the situation,the paper suggests that in order to meet the urban socio-spatial demands during the specific period of social transition,measures should be adopted to re-examine and adjust the strategies and planning techniques concerning market-led urban village renovation with the improvement of sustainable human settlement as the goal. Based on the analysis on the characteristics of human settlement of urban villages in Wuhan, the paper examines the special urban social functions of urban villages during their self-evolution process. The totally market-led mode of urban village renovation has neglected existing positive social effects and failed to provide fair development opportunities for disadvantaged groups, and it will hinder the construction of a diversified and vigorous urban socio-ecological environment. In view of the situation, the paper suggests that in order to meet the urban socio-spatial demands during the specific period of social transition, measures should be adopted to re-examine and adjust the strategies and planning techniques concerning market-led urban village renovation with the improvement of sustainable human settlement as the goal.