With the successful application of the Grand Canal as a World Heritage site and the release of the national Cultural Park construction plan，the Grand Canal is playing an increasingly prominent role in China’s cultural development. In history，the smooth Shandong section of the Grand Canal not only brought traffic and economic prosperity to the area along the canal，but also accumulated rich cultural resources for it. As a life culture created，shared and inherited by the general public，folk culture resources occupy a large proportion and an important position in the cultural resources of Shandong section of the Grand Canal. The folk culture resources in Shandong section of the Grand Canal have obvious regional characteristics. In recent years，Shandong province has made many attempts in the protection and utilization of the folk culture resources of the Grand Canal，and achieved certain results，but there are also some general issues like unbalanced development among regions，inadequate promotions，lack of professionals and talents，overemphasizing recreation and entertainment. This article proposes that the development of the Grand Canal cultural park in Shandong entails more policy support and incentives. Moreover，digital protection and technology-based development should be emphasized. Good storytelling and IP-based development strategy should also be adopted.