Xiaodiao Chinese folk songs, a subgenre of northern Shaanxi folk music, hold significant cultural and historical value, serving as a medium for oral storytelling and the preservation of regional identity. This study examines the role of Xiaodiao Chinese folk song literacy in fostering cultural heritage education. Conducted in Yanchuan County, Shaanxi Province, the research employs qualitative methodologies, including fieldwork, participant observation, and semi-structured interviews with five informants such as folk musicians, educators, and cultural heritage practitioners. Thematic analysis reveals that while Xiaodiao is a valuable tool for intergenerational knowledge transfer, its sustainability is threatened by limited educational resources and declining interest among younger generations. Findings suggest that integrating Xiaodiao into school curricula, utilizing digital platforms, and fostering community-based learning initiatives could revitalize interest and engagement. The study underscores the need for interdisciplinary collaboration among educators, ethnomusicologists, and policymakers to develop comprehensive strategies for preserving Xiaodiao and other forms of Chinese folk music. Future research should explore comparative studies with other regional folk traditions and assess the long-term impact of Xiaodiao literacy programs in cultural education.