Today, the state reconstruction policies for historical sites in China represent strategic long-term plans that meet the heritage conservation demands of the public. Once Buddhism consolidated in China, the extant architectural designs of Buddhist temples, statues and wall paintings became an important source of historical data in the Chinese Buddhism research. This study focuses on one of these extant architectural pieces—the Xi Qingling Temple in the city of Guilin. Given the spiritual and historical value of the Xi Qingling Temple, restoring it will go deep with not only the Chinese society but also the large Buddhist community. In the plan for temple reconstruction, the priority is laid on blending in the rebuilt construction seamlessly with its unique surroundings. In this regard, the study aims to reveal the social and cultural aspects that influenced how the Xi Qingling Temple was designed, which were then incorporated into a macro-plan of the symbolic and cultural reconstruction of an historical object. The economic impacts of this reconstruction project were examined.