The stone wall vernacular architecture is the indigenous creation of architectural culture of Bai ancestors living near Erhai Lake. In Panqu Village in Yinqiao Town, 44 ancient courtyards with an area of 48 acres are relatively well-preserved. Their location,layout, planning control, building style, and daily life customs have formed a unique regional culture, which is an important research topic for history, sociology, religion, art, architecture, and ecology. The protection of the ancient courtyards in Panqu Village should be based on the context, stick to the authenticity, develop the subjectivity, pay attention to the coordination, and focus on development, so as to achieve a virtuous circle between the vernacular architecture inheritance and the village development.