Abstract: The rule of law performs a critical role in securing modernized youth sports governance. We systematically elaborated on modernized governance of youth sports and the essential requirements and definitions of the chapter renamed “Youth Sports and Physical Education in Schools” in the Law of the People's Republic of China on Sports(2022 Revision) by means of literature data analysis and logical analysis. We found that the dilemma facing youth sports include unapparent health promotion effects, impeded pathways of sports skill training, and a undesired quality of youth sports reserve talents. Future major programs of youth sports should highlight the deepening of the reform of physical education in schools, improving youth health literacy, building high-quality youth sports training centers, and developing youth sports club brands. Within the “philosophy-system-capacity” analysis framework, in terms of the modernization of governance philosophy, nurturing the all-round growth of young people is the general position and goal of prioritizing the progress of youth sports and physical education in schools. The philosophy reflects the value orientation at the governance of youth health, education, and physical education for advancing the modernization of youth sports. As regards the modernization of the governance system, a package of strategies to improve adolescents' physical literacy were proposed in accordance with the Law of the People's Republic of China on Sports(2022 Revision) with the goal of improving the public service system of youth sports. Regarding the modernization of governance capacity, the Law of the People's Republic of China on Sports(2022 Revision) emphasizes on collaborative capacity of multi-level youth sports work across sectors and fields, so as to fully safeguard young people's basic rights of sports, and consolidate the foundation of modernization of youth sports governance by continuous promotion of rule of law and other measures.