Takingthe research and application of the design genes of Baoxiang patterns in Tang Dynasty as the theme, this paper explores the inheritance and innovation of traditional auspicious patterns in the contemporary context, and helps the research on the activation and inheritance of traditional culture. Based on the design gene theory, the function-assisted extraction method and color analysis method are used to interpret the meaning expression in the construction of the design gene, and establish the gene data of Baoxiang patterns in Tang Dynasty. Combining case analysis, gene application methods suitable for contemporary context are summed up. By digging out its most recognizable and cultural factors, innovative practices are applied to the cover design of WeChat red envelopes. The quantitative evaluation of the practical results verified the feasibility of the extraction and application methods of design genes of Baoxiang patterns. The establishment of the gene data of Baoxiang pattern provides material support for subsequent related innovative designs. This method effectively retains the essence of traditional Baoxiang pattern. The design works have both cultural recognition and modern fashion sense, which shows that design gene research has important theoretical value for the inheritance and innovation of traditional culture.