『Ne Zha: Birth of the Demon Child』 is the first 3D animation based on the popular Chinese mythological IP, Ne Zha, and has achieved great success, giving hope to China's 3D animation market. This study aims to compare and analyze the character development process of the animation character based on the existing Ne Zha IP with the characters in 『Ne Zha: Birth of the Demon Child』 to understand how to utilize Chinese mythological IP in modern animation production. The research results show that the character of Ne Zha in 『Ne Zha: Birth of the Demon Child』 retains traditional features while modernizing to breathe new life into the character. Secondly, by adopting Disney's character design strategies and actively utilizing 3D graphic technology, the character's details were enhanced, breaking away from traditional character images. Thirdly, the traditional character was adapted to fit modern social backgrounds, providing audiences with a strong sense of immersion. It is hoped that this study will serve as a basic reference for creators and researchers who aim to produce animations based on traditional mythological IPs.