This article discourses on how the inheritance and innovation in paper-cutting art have taken place through its integration with modern design language. Xuzhou paper-cut is regarded as representative of China's traditional folk art, carrying a rich cultural heritage, but it faces both challenges and opportunities that come with modern society. In the course of reviewing the development history of Xuzhou paper-cutting, the value of Xuzhou paper-cut as intangible cultural heritage was discussed. This paper will seek to find out the possibility of application for Xuzhou paper-cutting in modern design with both qualitative and quantitative methods, including questionnaires and interviews. Successful examples are used in this research to look for evidence that effectively proves traditional paper-cutting combines well with the principles of modern design in developing concepts, artistic expressions, and cultural symbolism. It shows that Xuzhou paper-cutting has a great potential to apply in modern design, and education, exhibitions, and community activities will be also necessary to revive it. On the other hand, traditional craft could adapt to current social needs only when the design language has been innovated. The research brought in new input with regard to integrating traditional culture with modern design from a theoretical and practical point of view, thus serving as an informant for the direction of further research in heritage and design integration.