Since the reform and opening up, the number of civil cases in China has increased significantly and the situations have become increasingly complex. A large number of civil cases have flooded into the basic people’s courts, making the “many cases and few judges” problem more prominent. In order to alleviate this problem, China’s Civil Procedure Law added the small claims procedure in 2012. However, the operability of the small claims procedure in judicial practice is not high, and it cannot effectively achieve the legislator’s legislative goals. This paper compares the small claims procedure in a longitudinal manner and finds that it has low distinction from the simplified procedure and insufficient procedural interest protection in judicial practice. Through a cross-country comparative examination, it seeks advanced legislative and judicial experience in the small claims procedure of foreign countries. Finally, based on China’s basic national conditions, it proposes the improvement path of setting up a “trial, trial, execution” small claims court separately and building a diversified dispute resolution mechanism, in order to promote the case division and simplification and advance the judicial system reform in China.