In recent years, the traditional village tourism development has become a hot issue for scholars. Based on the combing of relevant research literature, this paper summarizes the research progress of tourism development of traditional villages and its impact. The existing research focuses on the protection and development of traditional village tourism resources, diversified tourism development models and the impact of tourism development on protection and development. Tourism, as the main way to protect and develop traditional villages, has effectively promoted the functional transformation and spatial activation of villages, and at the same time, it has brought pressure on the protection of rural landscape and the inheritance of traditional culture. Strengthening multi-disciplinary comprehensive research, and improving research theories and methods; giving full play to the characteristic tourism resources of traditional villages, and exploring the path and mode of traditional village tourism development to promote rural revitalization; cultivating the cultural ecosystem of traditional villages, and coordinating the relationship between protection and development from different dimensions, are the aspects that need to be strengthened urgently in the future research on tourism development of traditional villages.