The work aims to apply the shape grammar to the innovative design of Yao embroidery patterns in Ruyuan, in order to develop the traditional culture of Yao in Ruyuan County, and promote the economic development of the county, thus enabling the Yao embroidery to be better spread in modern society. Innovative patterns designed by this method not only retain the element characteristics of Yao embroidery, but also meet the aesthetic needs of modern people. The combination of innovative patterns of Yao embroidery and product design can make the products have stronger cultural characteristics, and improve the added value of the products and the income of Yao people in Ruyuan County. Typical Yao embroidery patterns in Ruyuan County were selected for composition analysis and divided into a series of basic elements. The basic elements were reconstructed to get the basic innovative patterns. Based on the shape grammar, a series of unit innovative patterns were derived from the basic innovative patterns, and applied to design products by the color matching. Based on the traditional Yao embroidery patterns, many excellent innovative design schemes of Yao embroidery can be obtained by shape grammar. The cultural and creative products with regional and ethnic characteristics are formed by applying these patterns into different products, thus enhancing the cultural connotation of Yao and providing a feasible way for the innovation and development of traditional Yao embroidery of Ruyuan in modern society.