Abstract: The paper based on the speciality of the urban house demolition problem, uses dynamic non-cooperative game model to analyze the dynamic process of house demolition negotiation and their equilibrium results, and then provides two suggestions to improve the efficiency. The study results indicate that the limits of compensation might put the negotiation into trouble. However, separating the alliance may solve this problem. Providing a rational price with the least delay and separating the alliance are benefit for final settlement.