To catch and research the functional characteristics of the eight-masted vertical windmill and its automatic readjustment of sail angle in the Lixia River area of northern Jiangsu Province, to permit this intangible cultural heritage a new practical meaning in modern tourism through the innovative design of the sail structure of the eight-masted windmill, and to come up with a portable folding windmill product suitable for outdoor sports enthusiasts. Firstly, we spell out the history of the eight-masted windmill and its “trotting horse lamp” structure through literature research and draw the working principle of the eight-masted windmill in operation, and combine the eight-masted windmill with power generation device by converting wind energy into electricity. The design direction was to design a lightweight, breeze start, and stable power output windmill generator; secondly, the sketch of the windmill main shaft structure and scheme were selected, and the integrated form of the fan blade and the mast was selected as the sketch scheme; finally, the model experiment of the prototype of the folding scheme was conducted, and the absolute pressure difference between blades was analyzed by hydrodynamics to determine that the windmill can be used to generate electricity. After verifying its feasibility, the portable folding generator was modeled in 3D by MCAD, and make a physical model of the generator was made in a reduced scale of 1:2.5. Through the innovative design of the eight-masted windmill, it is made to serve the production life of modern society.