Traditional Chinese vernacular dwellings take root in farming culture with profound connotations. Through analyzing ecological thoughts and cultural ideas in traditional vernacular dwellings, this study aims to provide references for the design of modern vernacular dwellings. It is proposed in this study that ① Ecological thoughts of traditional vernacular dwellings include the simple eco-thought of 'human-nature oneness', Fengshui (traditional Chinese ideas hold that the location of a house or tomb is supposed to have an influence on the fortune of a family) theories of 'balance of yin and yang', energy-saving thought of 'making the best use of local advantages'. Traditional vernacular dwellings are mainly constructed according to local conditions, facing the sunny side and water, backing on the shady side and mountains, with local materials and suitable construction structures for local environment and climatic conditions, which enable residents to enjoy warm winter and cool summer, sufficient sunshine, excellent ventilation and heat-proof, wind and humidity proof, that is, a natural ecological living environment. ② Cultural thoughts of traditional vernacular dwellings include the strict and square philosophical ideas as well as harmonious artistic thoughts. Traditional Chinese vernacular dwellings demonstrate morals and ethics by strict and square patterns and strong sense of hierarchy, most of them have definite axes in spatial patterns to show the hierarchy and core of construction groups; abstract patterns of flower, grass, animal or human beings are also often applied in detailed designs, showing esthetic tastes. The formation of traditional Chinese vernacular dwellings has been closely linked with social and cultural factors, living habits, geographical, water and soil, environmental and climatic conditions as well as folk customs, which can provide significant references for the design and reformation of modern new-type vernacular dwellings.