China’s traditional villages face inactivity, decline, landscape damage, loss of cultural heritage, and ineffective governance. The primary focus of current conservation and development efforts in traditional villages is on promoting the revitalization of traditional village vitality and establishing an effective mechanism for revitalization and governance. The rejuvenation of traditional village vitality is a comprehensive demonstration of the catalyst effect. This article explores the revival mechanism of traditional villages through a spatial catalyst, functional catalyst, and cultural catalyst based on studying the connotation and function of the catalyst theory, taking Leju Traditional Village in Kunming City, Yunnan Province, as an example. The research findings indicate that (1) Leju Traditional Village has successfully transformed from a state of population decline, architectural decay, industrial decline, and cultural erosion to a renowned tourist destination and historical and cultural village. It serves as a model for revitalizing traditional villages, rural tourism development, new rural area construction, and rural revitalization. (2) The article examines and summarizes the three revival processes of Leju Traditional Village. Under the spatial catalyst, economic growth in the village’s vicinity is stimulated, villagers’ living standards improve, the village’s ecological landscape is enhanced, and tourism emerges as a critical economic driver. Under the functional catalyst, traditional houses’ functions are adjusted and transformed, social interactions are revitalized, activity venues are expanded, and activities are diversified. Within the cultural catalyst, the restoration of the One Seal historical buildings and Yi ethnic minority culture contributes to preserving national spirituality and heritage. (3) Building upon the revival of the Leju Traditional Village, a regulatory mechanism for catalyzing traditional hollow villages is established, focusing on events, industry, and construction guidance. The findings enrich the theoretical framework of traditional village revival and provide practical guidance for revitalizing traditional villages.