Objective: To improve the effective supply of community-embedded elderly care services and explore the causes of the dilemma of government-purchased pension services. Methods: Based on the non-cooperative game, the principal-agent research framework is applied to analyze the elderly care service supply dilemma. Results: The government and social organizations fall into the trap of non-cooperative game supply, which leads to the formalization and administrativeization of elderly care service supply. Con- clusion: Under the background of “delegate governance, improve regulation and update services”reform, it is suggested to deepen the level of decentralization, deconcentration, and optimization of services, and then promote the cooperation between the government and social organizations in order to improve the effective supply of elderly care services.