Rural settlement reconstruction relies on multiobjective system engineering. The demolition and relocation of rural settlements affects agricultural production, farmers' lives, and rural ecology. However, most studies on the topic have failed to examine the relationship between production, livelihoods, and ecology. We propose a framework for rural settlement reconstruction based on multidimensional suitability, which combines ecology, production, and livelihoods. Our framework integrates objective factors reflecting the differences among settlements and considers the reconstruction of the village of Pingba. The results show that: (1) Different suitability conditions yield differences in the number, scale, and spatial distribution of relocated and reserved settlements. Our results on multidimensional suitability show that 74 rural settlements in Pingba must be relocated or optimized, accounting for 67% of all settlements. (2) Rural settlements that need to be demolished and relocated have formed multiple clusters, and spatial integration and optimization have occurred mostly in reserved settlements. (3) When we consider individual factors, the number and size of rural settlements that need to be relocated increases significantly compared to when we consider regional factors only. This study unveils the influence of multidimensional suitability as well as farmers' individual characteristics on rural settlement reconstruction and provides an exploratory tool for rural space governance and modernization.