Abstract: Border ethnic regions, as critical components of China’ s national security framework, face multidimensional governance challenges due to their complex socio-environmental dynamics and limited institutional capacity. To enhance governance efficacy and promote sustainable social order in these areas, this study examines the case of Gengga Township in Yunnan Province through the lens of adaptive governance theory. Employing field research and in-depth interviews, the research systematically analyzes practical dilemmas and governance strategies in peacebuilding in border ethnic areas.The findings indicate that Gengga Township has developed a tripartite governance model grounded in its dual “border” and “ethnic” attributes, encompassing industrial adaptation, cognitive community formation, and social capital integration. Characterized as “securing borders through development, stabilizing borders through culture, and strengthening borders through institutions,” this model demonstrates how institutional flexibility can dynamically align policy objectives with local knowledge. It thus offers a transferable approach for addressing governance disembedding in comparable border ethnic regions.