In the contemporary design era characterized by globalized markets and localized marketing, incorporating traditional culture into design has become increasingly important to differentiate local creative sources globally. The work aims to develop and verify the Traditional Chinese Culture Innovation Value Grading System (TCCIV-GS) through two comprehensive studies to quantify the innovation value of traditional Chinese culture in cultural and creative product design. Study 1 focused on creating and validating the Traditional Chinese Culture Innovation Value Scale (TCCIV-S) through an extensive literature review and a questionnaire involving 1 632 respondents. The Traditional Chinese Culture Innovation Value Evaluation System (TCCIV-ES) was established to measure Chinese consumers' attitudes towards the creative transformation of traditional culture across three dimensions and 15 criteria. In Study 2, 68 students majoring in design evaluated 10 cultural and creative products with this evaluation system. This study verified the feasibility of the TCCIV-ES and promoted the development of the TCCIV-GS. The newly developed TCCIV-S is valid and reliable. The TCCIV-GS standardizes the criteria for measuring the design innovation value of traditional culture. This grading system not only helps assess the design innovation value of traditional culture in practice, but also promotes a more active and effective role of traditional culture in design.