This study is an attempt to incorporate the peony pattern known for Sung Dynasty art into jewelry design. The purpose of study is to provide the value-added application of classical style by using the unique features of peony pattern. In this research, the peony pattern is studied for its shape characteristics, processing technology, materials and other direct factors. Unique floral structure of peony pattern is analyzed to better understand the development of Sung Dynasty art form with the pattern of the style. The application of modern decoration goods and fashion jewelry related products are further studied. Integration and the establishment of cultural characteristics and modern design concepts and expressions are further used in the jewelry and merchandise design, such as store signs, packaging, jewelry boxes and hand bags, and so forth. The key points and recommendations for the design of cultural goods are then proposed to serve as references for designers to use in the development of the merchandise with cultural style.