Drama serves as an innovative teaching method, particularly within education. It offers a mode of learning that both challenges and supports students in understanding their world, allowing them to express and convey ideas through an artistic medium. Drama is crucial in the teaching of languages and also helps to develop learners’ intercultural communication skills, stimulates learners’ sense of cooperation, and provides a simulated real social environment, authentic communication tasks, and a holistic learning method. Therefore, the present article aims to examine how drama contributes to the teaching of the Chinese language. The reason behind conducting the current study is to explore the specific benefits of drama in language teaching, particularly within the unique Chinese context. Data was gathered using a questionnaire survey method. A valid sample of 169 Chinese language learning students and 68 Chinese language teachers participated. SPSS statistical software was utilized to analyse the data. The findings indicate that students who engage in drama activities within Chinese language classes exhibit notable proficiency in intercultural communication skills. The novelty lies in the study’s distinctive aim within the domain of drama in language instruction, as it conducts a thorough investigation into the advantages it offers in this field. By broadening comprehension of its influence on community cohesion, particularly in the unique setting of China, the study stands out. Additionally, it provides actionable recommendations for its integration into educational practices, further distinguishing its contribution to the discourse on drama’s role in language teaching. The results demonstrate that incorporating drama into language instruction promotes increased interest and motivation among Chinese learners. Additionally, the study highlights drama’s ability to cultivate a sense of teamwork and collaboration within the context of Chinese language education. This analysis highlights how drama activities contribute to a comprehensive and immersive learning journey for Chinese language students. This article recommends that all educational institutions implement drama in language teaching to improve students’ skills and performance.