Qingdao lies in the south of Shandong Peninsula, on the coast of the Yellow Sea. As a coastal and hilly city, Qingdaohas topographic features consisting of twisted coastlines dotted with capes and bays. The beginning of the 20th century witnessed the construction of western-style streets and buildings in Qingdao when it was occupied by Germany. Liyuan is the name of the residential buildings for Chinese labors during the German occupation. Liyuan retain the spatial composition of Chinese quadrangles (Siheyuan), and at the same time feature western technology. Therefore they have both Chinese and western flavors. In addition, they are the earliest urban residential complexes in China. The space system of Liyuan blocks has played an important role in the lifestyle and social network of the local residents. Liyuans have been home to Qingdao people from generation to generation, which makes it a spiritual symbol. Owing to its history and characteristics, Liyuan architecture has been designated as one of the historical and cultural protected areas in Qingdao, and has contributed to the formation of a distinctive geographical landscape. Since the 1980s, urban renewal and redevelopment in Qingdao have greatly impacted upon the protection of Liyuans, which has aroused concern from various communities.This research on Liyuans shows the geographic location of all the Liyuan blocks, classifies them in terms of courtyard composition and architectural features, and analyzes the relationship between their spatial composition and the residents’ life-style.