Contemporary Chinese art has witnessed a transformative evolution in the realm of installation art, particularly in the context of immersive new media installations within urban commercial spaces. This study explores the educational potential of immersive new media art in urban commercial spaces in Dalian City, Liaoning Province, China. The research journey spans various stages of Dalian's installation art development, from its early emergence in the 1980s to the prosperous period in the 1990s and its diversification in the 21st century. Key themes explored include the evolution of artistic expression, the impact on education, and the integration of new media in urban commercial spaces. The research site primarily focuses on Dalian's cultural and commercial landscapes, with a spotlight on the Xiongdong Street project. The study employs a qualitative research methodology, combining field research, interviews, multimedia elements, and data analysis to offer comprehensive insights into the subject matter. Key informants include artists, scholars, and experts within the field of installation art. The research results reveal the dynamic evolution of Dalian's installation art, its educational significance, and its integration into urban commercial spaces. The study suggests that immersive new media art has the potential to enrich art education, engage the public, and foster cultural and commercial development.