The Xiangtan Oil-Drum Dance, a unique local sacrificial dance, is practiced in the Xiang River basin of Xiangtan, Hunan Province. Characterized by a vigorous and impassioned style and rhythmic, vibrant beats, it projects a distinct aura of awe-inspiring power. As a singular form of single-sided drum dance specific to the Xiangtan region, it remains a rarity within China. In 1986, the dance was documented in the Anthology of Chinese Ethnic and Folk Dances, a key national publication compiled under the auspices of the former Ministry of Culture. It was later listed as an Intangible Cultural Heritage of Hunan Province. As a precious relic of folk art, the Oil-Drum Dance not only fills a gap in the narrative of Chinese dance history regarding this region but also provides an invaluable living specimen for the study of sacrificial dance culture in the Chu-Hunan tradition. Guided by the thematic framework of “The Rhythm and the Legacy”, this paper focuses on the safeguarding of the Oil-Drum Dance as Intangible Cultural Heritage and its modern transformation. It systematically reviews the current state of its transmission, analyzes in depth the challenges it faces—particularly the rupture in intergenerational transmission—and explores pathways for its living preservation and strategies for its modernization. The aim is to facilitate the art form’s better adaptation to contemporary societal needs and to provide insights for the inheritance and innovation of similar forms of Intangible Cultural Heritage.