With the development of social economy and the improvement of material level, people are paying more and more attention to their own health, and they are also constantly improving their fitness awareness. As far as the current sports equipment is concerned, the boring exercise methods can no longer satisfy people’s pursuit of higher quality fitness exercises. The embedding of the distributed virtual environment can incorporate its perceptual, immersive, and interactive characteristics, which increases the realization of multiuser interactive behavior in the field of sports equipment in the virtual scene. Therefore, this paper proposes the research and development of basketball sports equipment embedded system based on distributed virtual environment. First of all, this article adopts the literature method to learn the application of distributed virtual environment and embedded system in depth and, secondly, designs the embedded system architecture of basketball sports equipment suitable for distributed virtual environment and the software and hardware framework of the embedded system. Finally, the performance, delay comparison, system optimization test, and other aspects of the embedded system are analyzed. The average delay of interactive functions of embedded systems based on distributed virtual environment is 1.4 min, which saves 4 min compared with traditional interactive methods. And, the throughput rate of the system has also been greatly improved. The research on the embedded system of sports equipment based on the distributed virtual environment proposed in this paper will be beneficial to the development of society and economy, and it can also help more people to enrich the way of sports and enhance the fun of sports.