There are a large amount of existing residential buildings with backward architectual functions in China, which has resulted in too much energy consumption. Meanwhile, it will take huge investment and long periods of time to build new green buildings. Therefore, the renovation of existing residential buildings is the key to solve the probelem of resource consumption and sustainable development in China. Based on PEST-SWOT analysis model, this paper, focusing on four aspects, has analyzed the advantages, disadvantages, opportunities, and challenges in the green renovation of existing residential buildings. Accordingly, some suggestions have been put forward in this paper. First of all, relevant laws and regulations are supposed to be improved; the assessment standards and energy-efficiency labelling should be further refined. Secondly, it is suggested to promote the rational renovation and strengthen the motivation measures. Besides, the list of renovation projects are ought to be open and transparent to the public. Finally, it is of great necessity to develop green technology and cultivate talents in the area of green renovation.