[Purpose] This study aims to address the challenges faced by Xuzhou’s intangible cultural heritage (ICH) in the context of modernization and explore feasible approaches and application values of digital technology in its preservation and transmission. [Methods] Using a combination of literature review, case analysis, and field investigation, the current state of ICH preservation and digital practices in Xuzhou was systematically examined. [Results] Xuzhou has established a multi-stakeholder collaborative mechanism for the digital preservation of ICH and preliminarily developed a digital framework covering collection, management, and exhibition. These measures have effectively expanded the reach of ICH dissemination, but challenges such as the aging of inheritors, high technological costs, and difficulties in maintaining living transmission persist. [Conclusion] Digital technology enhances the dissemination and vitality of ICH. However, the core of ICH preservation remains the transmission through people, with digital means serving only as a tool. Future efforts should further promote the application of intelligent and immersive technologies while emphasizing the preservation of ICH’s authenticity and cultural context to achieve sustainable development in modern society.