Nowadays, the application scope of IP era is gradually expanding, because of the characteristics of its transmission, the audience is also increasing. The art of collage and paper cutting has gradually become a minority due to its style, and those excellent traditional cultural treasures and art forms that deserve to be carefully savoured have even been gradually forgotten. Illustration, as a particularly important content presentation in visual communication of art design, is also closely related to the combination of IP. Therefore, the purpose of this study is to elaborate the connection and development between folk Paper-cut art form and modern IP illustration, hoping to explore deeper innovative development space of Paper-cut art and IP through full understanding and exploration of Paper-cut and modern IP art at home and abroad, and promote mutual achievement and development of Paper-cut art and IP. This paper focuses on inheriting and carrying forward the excellent traditional national culture and sublimating the value of folk Paper-cutting and IP.