Huayin Laoqiang is a unique and historically rich Chinese folk music genre from Shaanxi Province, characterized by powerful vocals, rhythmic intensity, and deep storytelling traditions. This study investigates the role of Chinese folk music literacy in transmitting Huayin Laoqiang within contemporary educational contexts. Using a qualitative research approach, field observations, semi-structured interviews, and document analysis were conducted in Huayin City and Xi'an, with three key informants including master performers and educators. The findings indicate that oral transmission, while effective in traditional learning, conflicts with formal education systems emphasizing Western classical music. Challenges such as the lack of trained instructors, limited student engagement, and the absence of structured curricula hinder efforts to integrate Huayin Laoqiang into mainstream education. The study suggests developing digital resources, interdisciplinary collaborations, and training programs to enhance folk music literacy and promote cultural sustainability. These findings contribute to broader discussions on music education, heritage preservation, and innovative pedagogical strategies for traditional arts.