In the context of sustainable and healthy cities, many countries are transitioning from the A Century of The Car to the Car-free Era, actively exploring the street model of car-free cities. This shift offers opportunities to renew and transform vehicular spaces in central urban areas. By reviewing the theory and design philosophy of palimpsest, this article clarifies the characteristics of palimpsest and its application in urban landscape spaces. Coupled with the urban renewal trends toward green development, the article proposes the idea of green palimpsest by extracting historical heritage elements, current demands, and potential change from the temporal perspectives of past, present, and future. In the design practice of the Strand Aldwych in London, the strategies of green palimpsest successfully transformed the value attributes of vehicular spaces in central urban areas. They delivered historical, cultural, social, ecological, and multi-layered benefits. The idea of green palimpsest provides new perspectives for future urban renewal and sustainable development in car-free cities.