Due to its special location, rural areas located in the fringe of metropolitan areas are more obviously influenced by the operation of power and capital compared to ordinary villages, so they gradually become the spatial field where policies, institutions, funds and other factors occur complex effects together. Meanwhile, rural space alienation, social gentrification and other problems occur from time to time, which block the reasonable transformation of rural space. Therefore, it is of great significance to clarify the internal mechanism of rural transformation in metropolitan fringe areas and scientifically understand the law of rural development in metropolitan fringe areas to avoid such problems and guide the reasonable evolution of rural space and promote urban-rural integration. In order to guide the rational transformation of rural space, this paper takes the spatial production theory “tripartite dialectics” as the theoretical support to construct the research framework of rural spatial transformation in metropolitan marginal areas. And then the research takes Baolong Village, which locating in Chang’an District, Xi’an City as the case to empirically analyze the characteristics and mechanism of its spatial transformation. The result shows that: firstly, the spatial production under the intervention of external forces is essentially a process of realizing the redistribution of spatial interests by multiple subjects. While urban consumption demand drives the transformation of rural physical space function form, social relations and cultural composition are also reshaped, and there are trends such as “commercialization” of physical space, “business connection” of social network, and changes of cultural core. Secondly, in the process of multi-dimensional spatial production, due to the differences in spatial value concerns and practical abilities, the behaviors of various subjects are different, which leads to the emergence of problems such as chaotic rural spatial style and social barrier formation. Thirdly, the expansion and multiplication of capital is the fundamental driving force of spatial production. The dual advantages of rural location and factors in metropolitan fringe attract the flow of urban capital, whose pursuit of difference and unbalanced behavior essence promotes the continuous change of spatial functional form and the adjustment of production relations. Besides, power subjects represented by local governments, in consideration of the equity of spatial interests, pursue certain “economic goals” while also paying attention to the realization of social and cultural “non-economic goals”. Therefore, in the spatial production of material, social and cultural dimensions, it shows the function of management and supervision and the guidance and constraint of capital profit-seeking behavior. At last, in the process of promoting space production, all parties pay attention to the influence of social identity, pay attention to the economic interests of rural native residents, social belonging, cultural identity and other non-economic interest demands, promote the formation of new social relations, and provide guarantee for the orderly promotion of space reproduction. After these main ideas, the research also puts forward corresponding optimization suggestions based on the coordination and sustainability of rural spatial production. Detailedly there are two aspects of suggestions including spatial benefit distribution and cultivation of spatial production power, to reduce the negative effects of space production under the direction of market consumption demand. For one thing, in the process of rural transformation under the influence of urban consumption demand, the balance of multiple interests is the key to the coordinated promotion of spatial production. Local governments should play a guiding and coordinating role, set up a fair and reasonable spatial benefit distribution mechanism with clear rights and responsibilities, create a fair business environment, and effectively attract capital, technology and other factors to continue to flow into rural areas. At the same time, when guiding villagers to transfer part of their spatial rights, attention should be paid to the establishment and improvement of the benefit compensation mechanism to provide basic living security for villagers by providing jobs and regular dividends, so as to gather social identity and ensure the sustainability of spatial production. For another, the cultivation of endogenous driving force in villages is an important factor affecting the benign and sustainable spatial production. Local governments should strengthen the spatial development rights of social subjects, mainly villagers, and enhance their awareness and ability to participate in spatial production. On the one hand, to strengthen the construction of rural governance capacity, through the innovation of grassroots governance mode, optimize and improve the village collective grass-roots functions, strengthen the village collective as the “agent” of villagers’ interests, the village order “maintainer” role, to provide organizational support for the expansion of village collective economy; On the other hand, in addition to providing opportunities for the villagers to participate in the industry, more attention should be paid to improving the villagers’ spatial development ability, improving the villagers’ labor force level and ideology by means of knowledge output and employment training, and guiding them to effectively participate in the spatial production and become the new driving force of spatial production. In short, the study refers that: in the process of rural transformation, we should pay attention to the influence of capital multiplication behavior on rural spatial functional structure, social relationship network, cultural composition and other aspects, and pay attention to the role of power subjects in element allocation, supervision and management, so as to create a just and equitable spatial production pattern.