Guided by the semiotic theory, the work aims to explore the modern transformation path of Huayao cross-stitch cultural and creative product design to improve the added value of products, and empower rural revitalization with creative design of intangible cultural heritage. With the introduction of Charles Morris' semiotics and the combination of literature collection and field research, as well as theoretical research and design practice, the cultural symbols of Huayao cross-stitch were extracted by analyzing the three dimensions of semantics, syntactics and pragmatics, and the innovative ideas of the creative design of Huayao cross-stitch were derived respectively. At the semantics level, by constructing design theme and integrating narrative design, the semantic meaning of Huayao cross-stitch was extended and transformed. At the syntactics level, combined with the beauty of form, the design techniques such as form derivation and reconstruction, color extraction and innovation, and skill transformation and integration were used to extract and reorganize the language structure of Huayao cross-stitch. At the pragmatics level, the modern diversified carrier of Huayao cross-stitch was found, enriching the types of application products, and the marketing ideas of cultural and creative products based on the SIPS model were put forward, so as to expand and spread the pragmatics of Huayao cross-stitch. The development path of cultural and creative products of "symbol interpretation - design presentation - application and communication" is constructed from three dimensions of semantics, syntactics and pragmatics, which provides a new idea for the inheritance and innovation of Huayao cross-stitch, helps Huayao cross-stitch product innovation and market promotion, and actively inherits the excellent traditional national culture.