This article takes the Chinese traditional color culture philosophy foundation in the folk art embodiment as the research topic, takes the paper-cut art as the example, deeply discusses the Chinese traditional culture color, the philosophy thought and the cultural value in the paper-cut art application and the embodiment. This paper introduces the origin, development and characteristics of Chinese traditional color culture, and the important position of philosophical thought in Chinese traditional culture. By analyzing the historical origin, production technology and symbolic significance of paper-cutting art, this paper expounds the application and expression of traditional colors in paper-cutting art, and the embodiment of philosophical thoughts in paper-cutting art. By summarizing the importance and influence of the philosophical foundation of Chinese traditional color culture in folk art, this paper points out that its inheritance and development in folk art is of great significance to promotion and inheritance of Chinese traditional culture. Research in this paper not only helps to deeply understand rich connotation and unique charm of Chinese traditional culture, but also provides new ideas and reference for development of folk art. By discussing the philosophical basis of Chinese traditional color culture, we can better understand the connotation and value of folk art, promote the inheritance and innovation of folk art, and promote the prosperity and development of Chinese traditional culture.