This study aims to investigate the psychological cognitive mechanisms of rural residents amidst the renewal of suburban historical and cultural villages by examining the interplay between nostalgia, collective memory, subjective well-being and place identity in rural tourism destinations. Using Naobao Village as a case study—a suburban historical and cultural village in Hohhot, Inner Mongolia, this research employs a comprehensive approach integrating experimental methods and questionnaire surveys. The findings demonstrate that analyzing the interaction among the four emotions can elucidate the psychological cognitive mechanism of residents. Moreover, it uncovers that tourism effects significantly influence residents' perception of their living environment with positive effects on collective memory, subjective well-being and place identity. In the theoretical model for generating psychological cognition among residents in suburban historical and cultural villages, subjective well-being and collective memory play crucial mediating roles. This study provides a theoretical foundation and practical guidance for spatial reconstruction and cultural evolution of tourist landscapes in suburban rural tourist destinations.