The invention discloses a rural residential area regulation and grading method based on space suitability and internal characteristics. The method comprises the steps of collecting rural residential areas and peasant household basic data; constructing a rural residential point renovation space suitability internal characteristic grading regulation and control evaluation index system; constructinga regulation space suitability intrinsic characteristic grading regulation and control evaluation model; calculating rural residential area regulation and control grading by using a GIS; and determining and outputting a rural residential area regulation and control grading result. Based on GIS technology, the invention quantitatively analyzes the willingness of farmers, individual differences of rural residential areas and spatial suitability characteristics, constructs a rural residential area grading regulation model, comprehensively considers the spatial suitability of the rural residentialareas and the internal characteristics of the rural residential areas, enables the regulation grading to be specific to the residential areas, achieves the precise grading of the rural residential area regulation, and improves the regulation efficiency. The purpose of sustainable development of rural space is achieved.