Digital media is perpetually evolving, significantly impacting the Chinese language and literature. Concurrently, the rapid pace of modern lifestyles poses challenges to the transmission of cultural heritage within Chinese literary traditions. Accordingly, this study explores the pathways for digital innovation in Chinese literature, focusing on the integration of key virtual technologies to facilitate the cultural inheritance of the Chinese language. This research highlights the application of advanced virtual technologies in preserving and transmitting Chinese linguistic culture. It involves designing an experiential process for cultural inheritance, utilizing these technologies to process graphic and textual information pertinent to the Chinese language and literature. Furthermore, the study innovates cultural transmission methods through the synthesis of virtual 3D scenes and the implementation of human-computer interaction functionalities. An experimental evaluation approach was employed to assess the impact of virtual reality technology on the learning outcomes in Chinese literature and its cultural transmission. The findings indicate that users who interactively engage with the content in a virtual environment achieve a learning effect score that is 0.6528 points higher than those using traditional browsing methods. This underscores the enhanced efficacy of interactive experiences in facilitating the learning of Chinese literature. The regression analysis further demonstrates the significant promotional effects of the number of virtual experiences in Chinese literature (P1) and the rate of user interaction with computers (P2) on the dissemination of Chinese cultural content. The fixed and random effects for the number of virtual experiences are 0.9428 and 0.9784, respectively, while those for user interaction rates are 0.8945 and 0.8835. These results suggest a substantial impact on the broader dissemination and transmission of Chinese language literature, reinforcing the value of integrating virtual reality technologies in cultural education.