Abstract: Based on the grand proposition proposed by the state to achieve modernization of national governance capacity on the track of rule of law, this article focuses on the practical problems encountered in promoting the legalization of governance system and methods in the process of modernizing the rural grassroots governance system. By studying the localized social environment and the geographical, cultural, and ethnic differences brought about by the vast land area in China’ s rural areas, and based on the current situation of rural grassroots legalization construction, this article demonstrates the practical obstacles encountered in rural grassroots legalization construction and analyzes the underlying reasons. Through discussing the institutional origins and mechanisms of the people’ s mediation system, it reflects its targeted institutional advantages in solving the obstacles to rural grassroots legalization, Map out the institutional effectiveness and practical value of the people’ s mediation system and propose suggestions for the institutionalization and improvement of people’ s mediation. By optimizing the operation of the system and improving its application methods, maximize the use of the institutional value of the people’ s mediation system to assist in the construction of the rule of law at the grassroots level in rural areas; In the long run, it is expected to benefit the rural grassroots governance capacity to keep up with the overall process of modernizing the national governance system and governance capacity, and narrow the urban-rural gap in the construction of grassroots legal awareness and social legal construction.