There are mainly three ways for urban redevelopment in Qingdao city. They are the rehabilitation redevelopment with residents' transfer, the redevelopment with residents' transfer and the redevelopment with residents' return.In this study, we selected a typical case of the redevelopment with residents' return: the smallware market, and analyzed the advantages, the imperfections of the residential and business environments and the evaluation of the redevelopment from the viewpoint of the new residents and the returning residents. Finally, we confirmed the characteristics of redevelopment with residents' return. The findings show that, firstly, the residents are satisfied with the living environment and their neighbors, and the community has been inherited. However, the characteristics of Liyuan after the redevelopment are being low-valued due to the disappearance of the historical atmosphere. Secondly, the merchants pay much attention to retain working in the Jimo road. And most of the merchants are satisfied with the residential and commercial function of Liyuan has been inherited. Finally, in regard of sustainable development of Liyuan, we think the rehabilitation redevelopment with residents' return is required for the future redevelopment of LiYuan districts.