This study explores the impacts of agritourism on the quality of life of a rural ethnic community and discusses the challenges faced by residents who are attempting to improve their living standards through tourism. A case study was carried out in a rural ethnic village in Yunnan Province, China in the summer of 2010. Multiple research methods, including in-depth interviews, informal discussions, on-site observations and secondary data review were adopted in the case study. The study finding suggests that farms will benefit from increases in income but do not see dramatic increase in jobs mainly due to the family nature of the enterprises. Given the initiatives being undertaken in rural China, agritourism has the potential to grow into a much bigger industry. For a successful operation, it requires careful planning and a greater understanding of issues like marketing, communication, and government policy relating to this type of business.