Abstract: The value orientation of contemporary landscape design has changed from creating scenes to shaping sites, and from creating new objects to revealing hidden site information. This paper defines “palimpsest” as “the coexistence of historical and contemporary layers of sites” based on the spatial characteristics of contemporary landscape and design practice in the perspective of text. Palimpsest realizes the capability of the site and conveys the landscape meaning. The spatial characteristics of palimpsestuous landscape are “duality”, “transparency” and “intertextuality”. Palimpsest can be used as a tool of analysis and a means of design. Equal presentation of multi-spatial structures, place identity revealed from multi-layer accumulation, and new developed space triggered by design practice are the core values. This paper illustrates palimpsest both as an analytical tool and a design approach: presenting autonomy or establishing inter-connected relationships in the design process. The corresponding design concepts are shown in “artificial excavation” and “trace”. Summarizing the relevant design methods oriented from spatial characteristics and putting forward the form of palimpsest space are the keys of design process.