The purpose of this article is to study the revival of towns and commercial capitalism in the late Middle Ages. The results of the study found that in the late Middle Ages, European territories abstained from interstate wars resulting in more and more people engaged in commercial activities. The towns later became the center of the booming regions in late Middle Ages. There are two cities occurring at that time: the noble town and the temple town. The town later became the commercial center of the Europe for hundreds of years. The town's growth was largely driven by merchants and middle class. In addition, the town's boom came from professional associations or guilds and merchants' associations which was also important to the foundation of the development of the European economy in the late Middle Ages.