Abstract: This article establishes an evaluation model for the management and utilization level of rural homesteads based on the entropy-weighted TOPSIS method and measures the management and utilization level of rural homesteads in Shanxi Province from 2020 to 2022. The results show that the capacity for revitalizing and utilizing rural homesteads in Shanxi Province has the greatest impact, followed by the economic benefit ability, the long-term supervision ability ranks third, and the policy implementation ability is the lowest. Overall, the management and utilization level is not high, and there are significant regional differences. Therefore, it is necessary to attach importance to the smooth progress of the reform, accelerate the design of the institutional system, give full play to the multiple values of homesteads, strengthen policy supervision and implementation capabilities, so as to improve the management and utilization level of homesteads, optimize rural resource allocation, and stimulate rural vitality.