The internal governance ecology of universities is undergoing significant transformation, marked by shifts from unitary to pluralistic governance entities, from order-oriented to freedom-oriented approaches, and from power-based to rights-based logic. Law-based internal governance is an inevitable requirement for advancing the comprehensive rule of law in China, a key aspect of modernizing university governance, and a necessary path toward principled university operations. Synthesizing existing research, a three-dimensional framework for law-based governance emerges—conceptual norms, institutional systems, and structural arrangements—comprising value, purpose, subject, and rule elements that reflect its normative ideals. However, practical challenges persist, including imbalanced internal power structures, ambiguous authority of governance entities, underdeveloped governance institutions, and inefficient legal mechanisms. To advance toward ideal law-based governance, it is essential to construct a comprehensive legal culture system, a sound institutional framework, a stable rights structure, efficient legal mechanisms, and robust legal supervision.