Abstract: As the construction of China′s national park system continues to advance and the populations of endangered wildlife steadily recover, the frequency and severity of human-wildlife conflicts have increased significantly. These conflicts have become a key issue constraining community safety, the achievement of ecological conservation goals, and the implementation of the rural revitalization strategy. Taking nine provinces involved in the first five national parks in China as the research area, a three-dimensional analytical framework encompassing governance subjects, governance mechanisms, and governance performance was constructed based on polycentric governance theory. Using this framework, the evolution trajectory and practical implementation models of wildlife damage compensation policies in the region were systematically analyzed. The research reveals that current damage compensation policies are undergoing a fundamental institutional transition from a single-center and administrative-led model toward a polycentric collaborative governance model. During this transition, three typical models have emerged. First, the direct government compensation model is characterized by top-down administrative allocation and standardized procedures. Second, the market participation compensation model utilizes commercial tools such as wildlife damage insurance to diversify funding sources and share risks. Third, the community co-governance compensation model emphasizes the active role of local communities in damage assessment, monitoring, and the design of compensation mechanisms. Notably, these three models do not represent a simple linear substitution. They correspond to different institutional forms at different stages of governance development. More specifically, they reflect a gradient of increasing diversity in participating actors and growing complexity in the institutional system. Although some progress has been made in policy practice, many prominent challenges remain. These include generally low compensation standards with significant regional disparities, overreliance on fiscal funding and consequent supply pressures, a lack of substantive community participation mechanisms, and inefficient claims processes that lead to delayed payments and erode public trust. The root cause of these difficulties lies in the structural singularity of existing governance arrangements and the absence of effective coordination mechanisms among diverse stakeholders. To address these institutional challenges, this paper advocates for the construction of a diversified and sustainable systematic compensation mechanism, as well as a strategic shift in policy orientation from passive post-damage relief to proactive and full-process management. This transformation encompasses three core dimensions. First, a diversified funding system combining fiscal budgets, insurance premiums, and ecological compensation funds should be established. Second, multi-stakeholder coordination mechanisms need to be improved, with clearly defined rights and responsibilities for each participant. Third, community rights and participation channels should be embedded into policy design to enhance procedural fairness and implementation efficiency. With the overarching goal of achieving synergies between ecological protection and the sustainable development of surrounding communities, this study offers theoretical insights for the evolution of compensation governance systems through a comprehensive analytical perspective, and provides practical guidance for improving human-wildlife conflict governance in national parks.