Cultivated land protection in highly urbanized regions like Shenzhen, China is facing challenges due to encroachment and fragmentation. To address this, a new institutional framework has been proposed, focusing on spatial optimization, management innovation, and safeguard systems. The approach includes projects for farmland reform, zoning of cultivated land, and bid management for land leasing. The benefits of protecting cultivated land in urban areas are discussed, including political, ecological, cultural, and technical aspects. However, there are potential risks in managing facility agricultural land. This framework and its implementation paths offer guidance for balancing economic growth and cultivated land protection in developing countries.