The establishment of the Hainan Free Trade Port (FTP) represents one of China's most significant institutional reform initiatives aimed at enhancing international trade competitiveness, maritime connectivity, and regional economic integration. As a strategic gateway linking domestic markets with global maritime networks, Hainan Port has undergone substantial transformation through policy innovation, infrastructure modernization, logistics optimization, and governance restructuring. This study investigates the relationship between institutional policy innovation and strategic port development by comparatively assessing the evolutionary trajectory of Hainan Port within the Free Trade Port framework. Drawing exclusively on existing literature concerning Chinese port development, maritime logistics, ecological port construction, operational efficiency, security resilience, and regional integration, this research develops an analytical framework integrating institutional governance, functional transformation, operational modernization, and sustainable development. A qualitative comparative research methodology based on systematic literature synthesis is employed to evaluate how policy empowerment influences port competitiveness, logistics efficiency, technological innovation, environmental sustainability, and regional economic collaboration. The findings indicate that institutional innovation serves as the primary catalyst for strategic port evolution by reducing administrative constraints, improving logistics coordination, encouraging intelligent port technologies, strengthening ecological governance, and facilitating integrated port-industry-city development. The study further identifies several implementation challenges, including policy coordination complexity, environmental protection requirements, infrastructure synchronization, and governance adaptation. The research contributes to the understanding of Free Trade Port development by proposing a comprehensive policy-development framework capable of guiding future strategic planning for emerging international maritime hubs.