Abstract: The Rural Revitalization Strategy is a core measure to advance agricultural and rural modernization, and it represents an essential pathway for promoting Chinese-style modernization and realizing the great rejuvenation of the Chinese nation. This paper selected Xuanwei City in Yunnan Province as a practical case study, analyzing its intrinsic mechanisms and practical pathways for rural revitalization based on collaborative governance theory and embedded development theory. The findings revealed that strengthening Party leadership and grassroots governance ensured correct direction while boosting collective economies, whereas developing characteristic industries and adopting advanced production technologies would promote efficiency improwements and increase farmers’ incomes. The synergy of these two aspects was conducive to constructing a two-way cyclical mechanism for cultivating governance efficiency and development momentum, aiming to achieve the goal of constructing livable, workable, harmonious, and beautiful villages. In Xuanwei City under the leadership of CPC, the innovation pathway had been upgraded across the entire industrial chain, strengthening organizational functions, building agricultural brands, enhancing technological drive, and exploring a model featuring in CPC leadership, industrial empowerment, and multi-stakeholder participation, providing inspiration and reflection for rural revitalization in southwestern China.