This paper analyzes the conflicts between small traders and urban management officers, finds out the main causes of the problems, and puts forward relevant countermeasures and suggestions. Firstly, based on the evolutionary game theory, the evolutionary game model between small traders and urban management officers is established. The dynamic evolution process is integrated into the model, which can reflect the strategy improvement process of the game subject, and simulate the evolution process by software. Secondly, the analysis of the dynamic equations of each game agent is conducted. The final stability strategy of each game subject is obtained under different initial conditions.The results show that the strategies adopted by small traders and urban management officers are related to the parameters of the initial state of the system. At the same time, the evolutionary game analysis of urban management has certain guiding significance for standardizing the market order and beautifying the appearance of the city.