Shuyuan (academy) and college originated from different cultural and educational traditions in China and the West. Modern academy is the product of education reform in the 20th century. As an important part of modern academy, University academy system is the integration of modern higher education organizations and academy education traditions. From the perspective of organization and function, it falls into two categories, the teaching organization form in which independent talent training activities are carried out and the mode of student education management under specific educational institutions. It is promoted by factors such as national culture inheritance, transformation of talent training models and development of mass higher education, which determine its historical inevitability and profound cultural and educational foundation. It integrates Chinese and western higher education modes. The academy system and college system complement each other, satisfying the demands of the new era to cultivate high-quality innovative talents. It plays an important and unique role in building institutional guarantee for “fostering virtues through education,” promoting the essence of traditional culture as well as academic innovation and educational exchanges. It is an important measure to promote the modernization of Chinese higher education.