Aiming at the design status of mismatch between the broad prospects and supporting capacity of "stylized" and "generalized" urban IP in the "phenomenal" consumer market of urban cultural tourism in the era of flow economy, the work aims to explore the "emotional, scene-oriented and personified" urban IP narrative design mode based on urban culture, urban story and urban emotion. Literature research, field research and other methods were used to sort out the urban IP design and the research status in China and abroad, clarify the logical relationship between IP design and narrative text, narrative theme, narrative content and narrative method, and explore the deep connotation and function of urban culture, urban story and urban emotion in urban IP design. With the case of Beijing Rabbit, the guardian of the capital, as an example, the advantages and value of narrative design in shaping urban IP were demonstrated. "Emotional, scene-oriented and personified" IP groups were created with narrative design theory and method, and digital media network technologies such as virtual reality, interactive interaction and scene experience were combined to promote the "self" renewal of urban IP. Through the study of urban IP narrative design, the potential of narrative design theory in urban IP design is explored, so as to promote the marketization and commercialization of urban IP and boost the development of urban IP industry.