Traditional shadow puppetry is one of China's intangible cultural heritages, characterized by the use of paper silhouette projection on a screen. With advancements in science and technology, immersive virtual reality technology offers new possibilities for digital shadow puppetry presentations. This paper aims to explore the impact of immersive virtual reality technology on cultural symbols in digital shadow puppetry from a technological perspective that changes tradition. Firstly, we introduce the meaning and importance of cultural symbols in traditional shadow puppetry, as well as the forms of expression and challenges faced by this art form and cultural heritage. Then, we analyze in detail the definition, characteristics, and application status of immersive virtual reality technology in cultural performance fields while discussing its change and innovation within digital shadow puppetry. Furthermore, we discuss how this technological innovation brings about new forms of expression while also presenting challenges through collisions between tradition and modernity. Finally, we summarize our research findings while prospecting future development directions for presenting cultural symbols within digital shadow puppetry; limitations are also proposed along with future research directions. This study helps further understand how immersive virtual reality technology impacts traditional culture while providing useful references for protecting and inheriting traditional cultures such as digital shadow puppetry.