This thesis investigates the innovative application of virtual reality technology in the digital display of intangible cultural heritage. Intangible cultural heritage is an important part of human culture, and with the continuous development of digital technology, the protection and display of traditional intangible cultural heritage is facing new challenges. Virtual reality technology as an emerging technical means, its digital display is of great significance for the protection and inheritance of intangible cultural heritage, and its immersive and interactive features can bring a new experience for the display of intangible cultural heritage. This paper firstly introduces the basic principles and characteristics of virtual reality technology, and then explores the application methods and effects of virtual reality technology in the digital display of intangible cultural heritage. It is found that virtual reality technology can enhance the audience's cognition and understanding of intangible cultural heritage by simulating realistic scenes and providing interactive experiences. Finally, this paper proposes future directions and challenges for the development of virtual reality technology in the digital display of ICH, as well as suggestions for further research. This study is of great significance in promoting the protection and inheritance of intangible cultural heritage and the application of virtual reality technology in the cultural field.