Abstract With the in-depth development of the market economy and the acceleration of the process of urbanization, a large number of people have poured into the city, and a large number of residential communities have been developed and constructed. Design quality in the development process is often replaced by output. Some companies attach importance to quality but do not know how to control quality. Based on this, this paper uses the method of multi-sensor information fusion to study the planning and layout design methods of residential areas, and provides a design basis for solving the problems of people’s living environment deterioration and increasingly scarce land resources. Based on the Rhinoceros and Grasshopper parametric platform, this paper integrates residential information model, performance prediction technology, and multi-sensor information fusion technology, taking residential planning and layout parameters as design variables. A set of intelligent optimization system for residential planning and layout based on multi-performance objective simulation was compiled. The “internal factors” and “external factors” that affect the results of RLIOS are studied, and then the residential planning and layout design methods are studied. Experiments have proved that no matter what algorithm is used, the performance of each target can be improved, the floor area ratio performance can be improved by 35.3–3.3%, and the open space performance can be improved by 12.6–31.36%. It shows that the residential planning and layout design method based on multi-sensor information fusion proposed in this paper improves the accuracy and efficiency of the work.