China’s ‘Double Reduction’ policy represents a systemic reform in basic education, aiming to restructure the educational ecosystem and promote the holistic development of students by enhancing in-school educational quality and regulating out-of-school training. This study critically examines the historical evolution, contemporary challenges, strategic implementation, and broad impacts of the policy. Key implementation challenges include elevating classroom teaching quality, managing the persistent underground extracurricular tutoring market, and constructing comprehensive educational evaluation systems. This paper advocates for comprehensive strategies such as pedagogical innovation, professional teacher development, multi-stakeholder governance mechanisms involving schools, families, and societal entities, and digital oversight. Ultimately, the policy symbolizes a paradigm shift toward sustainable, equitable, and quality-focused educational governance.