Under the background of digital development, there are new ideas for the protection of traditional historical and cultural blocks, and the design of CAVE system somatosensory games was studied and explored based on the revitalization project of Shaoxing Lu Xun's Hometown Historic District. The overall system composition, characteristics and advantages were analyzed, and the impact of the system on the protection and transformation of traditional historical and cultural districts was discussed. Through case studies, the use of virtual reality technology to realize the innovative development of historical heritage buildings and internal spaces, and finally propose an effective solution to the contradiction between cultural heritage protection and public visiting services, so as to improve the IP of Shaoxing's world-class ancient city and increase the depth of cultural and tourism experience.