This paper uses virtual reality technology, augmented reality technology and other means to combine the virtualization design with traditional Chinese literature, interpreting a “virtual realm” in the future world from a new perspective and reforming the teaching of traditional Chinese literature through three aspects of literary imagery, scene and cultural display. This is a reform of traditional Chinese literature teaching, focusing on the three aspects of literary imagery, scene, and cultural display. The results of applying VR technology to the teaching practice of traditional Chinese literature show that on a natural level, the imagery of smoky rain and willow is mainly used. At the level of humanistic architectural landscape, temples, Rainflower Terrace, and Phoenix Terrace are the main imagery. At the level of social and cultural activities, the frequency of the Six Dynasties is the highest (40). Classical garden art and culture can be demonstrated in the scenes constructed throughout traditional Chinese literature, including poetry and literature. Compared to traditional teaching methods, the satisfaction rate for cultural display in VR teaching of traditional Chinese literature is as high as 92.5%. In the comparative analysis of teaching feedback, the experimental class mainly focuses on the score range of 60-80, while the distribution of the control class mainly focuses on the range of 30-60 points. The use of VR technology, on the other hand, allows students to devote themselves to the course and improves the learning process.