With the gradual maturation of virtual computer technology, it is increasingly used in real life to represent its effects realistically. The connection between arts and crafts and digital technology is getting closer. To bring new opportunities to the development of arts and crafts, virtual reality technology and augmented reality technology is integrated to establish a 3D arts and crafts virtual design model with visualized interactive arts and crafts design as the core. In the visualized virtual scene with the support of a craft knowledge base, the coordinates of virtual design tools, original objects inside the tools, and other points are derived according to the pick-up points. By repeating “delete current scene - generate new scene”, the design of arts and crafts is realized. After the verification of properties, performance, and satisfaction, the process error of the virtual design model is only 1.57mm, the average design cycle is 5.91 hours, and the labor cost, pre-preparation cost, and design cost are 214.66 RMB, 100 RMB, and 20 RMB respectively, which are significantly lower than the traditional design mode. Furthermore, the average scoring value of designers for different forms of arts and crafts is greater than 8 points, which is more satisfying with the application effect of the model. The model is connected to design practice with the help of virtual technology, which not only improves work efficiency and saves material and labor consumption but also facilitates the optimization of design solutions and the extension of solution serialization.