Abstract: Alley networks in the old parts of cities, often characterized by their narrow, dilapidated, and disconnected nature, are rarely integrated systematically into the urban road system. They present a significant challenge for urban renewal because of their complex ownership structures and boundaries. Using the urban renewal of Zhijiang Road West Subdistrict in Shanghai as a case study, this paper demonstrates that alley networks are not only vital components of the traffic microcirculation system but also pivotal to urban renewal efforts. This paper outlines three key strategies for alley network renewal. First, clarify the unique status and role of alleys within the road system, guided by human-oriented and localized approaches. Second, implement comprehensive renewal strategies aimed at developing a "public alley" system within the micro-environment of the old city. Third, innovate implementation mechanisms to achieve "win-win" outcomes under the coordination of the subdistrict offices and other grassroots governments. This involves using effective "YIMBY toolbox" to overcome common "NIMBY" obstacles and minimize “prisoner's dilemma”scenarios.