Moral education tradition is not merely a relic of the past but remains intrinsically embedded in the present, maintaining a dynamic and evolving continuity. Historically, the development of moral education tradition can be categorized into five distinct phases: emergence, initial formation, consolidation, expansion, and subsequent decline and transformation. In ancient China, moral education was accorded paramount importance, reflecting a longstanding pedagogical tradition. The pursuit of ideal personality constituted the core content, primary pathway, and fundamental methodology of this tradition. Furthermore, moral education tradition has served five key functions: regulating formal education, stabilizing and advancing societal development, preserving cultural heritage, fostering the Chinese national spirit, and shaping the distinctive character of the Chinese people. To realize its contemporary value, it is imperative to critically engage with China’s moral education tradition by retaining its essence while discarding outdated elements, thereby facilitating its creative transformation. Such an endeavor is vital for constructing a socialist moral education tradition with Chinese characteristics. In the current educational landscape, schools must prioritize moral education, cultivate ideal personalities, and refine pedagogical models. Additionally, there should be an emphasis on designing a tripartite content system integrating political, ideological, and ethical norms, alongside promoting traditional Chinese virtues. More essential measures include enriching the substance of moral education, framing it as a holistic practice that nurtures students’ cognition, emotion, volition, and behavior, exploring effective principles and methodologies, and emphasizing self-cultivation in moral development. In conclusion, only through the creative transformation of China’s moral education tradition can its contemporary value be fully actualized.