The work aims to analyze the design logic and cultural connotation of auspicious composite characters and explore their innovative applications in modern society to promote the inheritance and development of traditional culture. By employing case study methodology and integrating theories from design, psychology, cultural studies, and linguistics, these composite characters were analyzed, revealing the "harmony and union" ideology and cultural roots behind their development and elucidate the dual value of these characters in visual communication and cultural inheritance. The discussion on application cases of contemporary composite characters showed innovative practices and diverse expressions of auspicious composite characters across different design fields. In contemporary settings, the auspicious composite characters can blend form, ideology, and technology with current demands, presenting a new manifestation of composite characters in modern society. This offers a fresh perspective and approach for the inheritance and development of China's excellent traditional culture.