At present, the traditional folk culture of Li nationality is gradually disappearing. This paper discusses how to develop cultural and creative products with distinctive regional cultural characteristics by means of cultural and creative design, so as to protect the traditional folk culture of Li Nationality in Hainan. Through literature analysis and case comparative study, this paper collates, analyzes and distills the four categories of traditional Li Folk Customs, namely material, social, oral and spiritual, extracts and transforms the cultural symbols of Li nationality, and probes into the development and innovative design approaches of Li traditional folk customs in the materialized design, non-material design and cultural IP creation. The traditional folk culture of Li nationality is rich in content, laden with both national and local characteristics. It is an important way to design and develop cultural and creative products based on new design technology and cultural IP theory. Through IP creation and cultural and creative product design, it can not only enhance the cultural connotation of cultural and creative products, promote the production and sales of local tourism products, but also be instructive for inheriting and carrying forward the traditional culture of Li nationality.