Xiaonan Village, as a traditional cultural village, has a rich cultural heritage of North-South integration, but it is facing a cultural inheritance crisis due to the lack of cultural protection and publicity mechanisms and the existence of a single form of cultural inheritance. This study aims to address the current situation of cultural heritage in Xiaonan Village and propose an innovative cultural heritage program that organically combines immersive narrative theory to enhance the effectiveness of cultural heritage and dissemination through the addition of digital technology. The study collects information through field research and interviews, utilizes affinity diagrams and opportunity statements to sort out the historical and cultural lineage of Xiaonan Village, explores the opportunity points of immersive narratives, and finally designs an innovative program through co-creation and presents it with a service blueprint. The program takes the southward migration history of Yuan’s family as the main narrative, combining digital interactive technologies such as AR with local cultural heritage to construct a large-scale interactive scenario experience consisting of six chapters: “Origin,” “Mutation,” “Southern Migration,” “Northern Gaze,” “Continuation,” and “Rebirth.” The project can showcase the history, culture and related customs of the ancient Xianbei, providing visitors with an immersive interactive experience, enhancing the cultural inheritance effect and external attraction of Xiaonan Village. This study provides innovative ideas for the cultural inheritance work of Xiaonan Village and serves as a reference for other cultural villages’ cultural inheritance projects.