Under the background of constructing a new development pattern and high-quality urban development, the renovation and upgrading of urban road network become the only way for urban road development. Urban old road renovation projects are usually based on one road repair needs, but lack of overall planning consideration for regional transportation. With the development of the whole-process project general contract, the renovation of old urban road is no longer a single road or several roads to be rebuilt and renewed, but the road network is rebuilt with the thought of regional overall planning, which will have a strong impact on the road rebuilding and the traffic system around the project. By introducing the VISSIM micro traffic simulation software, this paper dynamically simulates the traffic benefits before and after road traffic renovation in the simulation area, and evaluates whether the area needs to be renovated, renovation methods and their actual effects according to the evaluation indexes such as average delay, intersection timing scheme, average queue length and service level. Then it puts forward and verifies the improvement measures of coordinated upgrade of urban area and surrounding road network, so as to realize the coordinated development of urban renewal and urban traffic.