Traditional family customs have five functions: family governance, self-cultivation, inheritance of trade, survival and service to the country. These functions were realized excellently in history. Such historical realization was carried out owing to the realization mechanism composed by rational consciousness, educational guidance, warning and punishment, and ultimate belief. To implement the modern transformation of the traditional family customs, attention should be paid not only to the functions and realization mechanism of the traditional family customs, but also to the social features formed through the changes of times, as well as the five institutional challenges brought about by these features, such as the market economy system and the principle of benefit distribution. In view of this, the modern transformation of the traditional family customs can only be realized by returning to the family mode under the principles of avoidance, conformity, gain-loss balance, and innovation. With such preconditions, the transformation cannot be aggressive, but it is still powerful enough to awaken consanguinity, love for each other, sense of responsibility, and awareness of rules, and to reconstruct the structural function of the family as a place for the cultivation of personal values.