Traditional colors serve as a primary visual representation of China's outstanding traditional culture, while cultural and creative products act as a key channel for cultural heritage and innovative dissemination. The modern transformation of traditional colors has become a crucial approach to enhancing cultural connotation and aesthetic value in cultural and creative design. To address issues such as homogenization and cultural deficiency in contemporary cultural and creative color design, this article conducts a series of analyses on the modern transformation and practical application of traditional colors in cultural and creative product design. The results indicate that implementing practical strategies such as delving into cultural connotations, innovating transformation techniques, and strengthening market adaptability can significantly enhance the cultural distinctiveness, competitive market advantages, and communication effectiveness of cultural and creative products. This, in turn, promotes the contemporary expression of traditional Chinese color culture and drives the high-quality development goals of the cultural and creative industry.