This paper introduces the combination methods of energy-efficient design and sustainable technologies for improving living environment of Chinese Folk Dwellings. A demonstration project having been built in Yan’an City will be used as an initial, sustainable, prototype in suburban areas in Northwestern China. The experimental research and objective sense investigation of occupants have been carries out to evaluate the design strategies. It is hope that this method brings not only a new sense for the architectural facilities, but also a new concept for the architectural design.