AbstractAccompanying the functional transformation of rural areas from productivism to postproductivism, the rural areas with scenic views surrounding megacities are re‐evaluated in terms of their importance as destinations for visitors, especially in the case of booming bed and breakfast (B&B) industry in contemporary rural China. While private investment has generally led to improvements in the physical space and economic development of these villages, there is also concern about the negative effects of rural gentrification, such as the commercialisation of rural space, the alienation of rural culture and the displacement of indigenous residents. This study examines the multifaceted nature of rural gentrification by observing two villages within the Moganshan Mountain area—the birthplace of rural B&Bs in China, and explores how these processes have been leveraged to promote rural revitalisation. Research findings suggest that disparities in original resources and property rights allocation underpinning the B&B industries among the first‐wave gentrifiers and the local villagers, when viewed through the lens of linked migration, may lead to different socioeconomic outcomes. The B&B industry's growth can either be exclusive, primarily favouring gentrifiers, or complementary, fostering mutual benefits and learning opportunities for both gentrifiers and local villagers. Moreover, forming a collaborative network of rural villagers, returning migrants, and external elites can contribute to rural revitalisation through gentrification. These findings contribute to the theoretical understanding of rural gentrification by adding evidence from the Global South and provide insights to inform Chinese rural revitalisation policies, especially alternatives to traditional state‐led revitalisation projects.