In recent years, China has experienced a continuing decline in birth rates, leading to a gradual contraction of the school-age population and significant changes in educational demand. Therefore, as key institutions for training basic education teachers, local normal universities are facing multiple challenges, such as the shrinking number of students and increasing pressure on graduate employment. These issues, in turn, have undermined their public reputation and institutional attractiveness, resulting in decreased financial support and marginalization within the higher education system. In response to these challenges, local normal universities could strengthen their institutional capacity through diversified enrollment strategies, adjustments in academic structure, and the development of distinctive academic disciplines. Furthermore, they should enhance their role in continuing teacher education, engage in regional education governance, and contribute to the development of a lifelong learning system, thereby reshaping their educational value and social recognition.