In order to discuss the innovation of intangible cultural heritage arts and crafts design, it is essential to first understand the current situation of intangible heritage arts and crafts, and then proceed from two directions, which include visual form and functional value. The role and influence of digitization and industrialization on the modern transformation of intangible cultural heritage arts and crafts design need to be clarified. In terms of ideas for innovative designs, interactive scene design and cultural brand building can be emphasized. These research results provide ideas and methods for realizing the creative transformation and innovative inheritance of intangible cultural heritage arts and crafts.