Dongying folk songs are a vital component of the cultural heritage in Shandong Province, China, reflecting the region's history, customs, and collective memories. The primary objective of this study is to investigate the Chinese musical literacy on Dongying folk songs preservation and transmission in Shandong Province, China. The study was conducted in Shandong Province and involved in-depth interviews with eight key informants, including provincial-level intangible cultural heritage transmitters, experienced singers, and community participants. Data were collected through semi-structured interviews, participant observations at local cultural events, and document analysis. The findings reveal that musical literacy within family and community settings plays a crucial role in maintaining the transmission of Dongying folk songs. However, challenges persist in formal education systems, where limited resources and a lack of specialized educators hinder the effective teaching of traditional music. The study suggests enhancing community-based initiatives and integrating digital media to bolster preservation efforts. This research contributes to the broader discourse on cultural preservation, emphasizing the need for a holistic approach to musical literacy that includes technical, cultural, and emotional dimensions.