After the Chinese classical literary work New Tales While Trimming the Lamp was introduced, it spread to Japan through the Korean Peninsula and gradually became popular in Japan. Among its stories, The Peony Lantern went through stages of translation, adaptation, and recreation, greatly enriching Japanese literature and playing a significant role in its development. This paper examines influential adaptations by analyzing Japanese adaptations and reception of The Peony Lantern, while also exploring new forms of classical literary works' dissemination in modern times and the importance of their transmission in the digital context. The aim is to enrich our understanding of classical adapted literary works, explore the East Asian inheritance of The Peony Lantern, and deepen our understanding of the profound cultural origins between China and Japan.