Abstract: Among the Tibetan areas in China, Diqing Tibetan Autonomous Prefecture is famous for its variety of ethnic groups and stability of social order. In previous studies, some scholars have summarized its experience in keeping social order from several perspectives, such as the good implement of ethnic policies, the relationship between identities of the nation and of the specific ethnic group, and the develop model of tourism, etc. However, these works are basically satisfied themselves with mere descriptions of empirical materials. Diqing Tibetan Autonomous Prefecture is located at a junction of several different ethnic groups, which have established “regional communities” based on long-time communal living. After the ethnic identification in the 1950s, the new ethnic identity pushed people to redefine themselves into clear and distinct categories. However, this new identity of nationality is not much more than a hollow label, while ethic norms and emotional ties based on regional communities are still the basic forces to keep society’s cohesion and stability. By thoroughly discussing “Diqing experience”, we can have a better understanding of the predicament of contemporary ethnic policies, as well as the way to construct China as a multi-ethnic state.