Taking Suzhou villages in China as cases, this study focuses on the utilization of traditional dwellings in historical villages. In response to the impacts that utilization may cause on heritage conservation, an evaluation approach based on heritage value is proposed. Through theoretical studies using literature and field survey, it identifies four evaluation dimensions – historic, artistic, cultural, and social value – and proposes three criteria for each dimension. Then, the priority of the criteria and the application of the approach are discussed. This study hopes to provide a reference for decision-making and post-evaluation of relevant utilizations, promoting effective heritage conservation.