Folk color printed cloth in southern Shandong is a handcraft with strong local characteristics. The work aims to broaden the development path of intangible cultural heritage by exploring the design method of folk color printed cloth of southern Shandong in cultural and creative products. With the folk color printed cloth in southern Shandong as the research object, the dominant factors such as pattern, layout and color, as well as the recessive factors such as design characteristics and semantic connotation of the folk color printed cloth in southern Shandong were combed and analyzed by combining graphics and text through field investigation and literature collation. According to the CGM model, the design factors of the folk color printed cloth in southern Shandong were extracted and deduced, and the new patterns and cultural and creative products were combined to explore the compatibility of the two. Folk color printed cloth in southern Shandong has a strong decorative meaning. It is feasible to deduce an innovative pattern with gene of folk color printed cloth in southern Shandong by constructing CGM model rules. This method not only expands the thinking for the redesign of traditional patterns with theme implication, but also provides reference for the development and application of the folk color printed cloth in southern Shandong.