Abstract: The cross-border integration with intangible cultural heritage skills is an important path for the innovative design of leather goods products. Using the four-stage model of knowledge transformation as the theoretical foundation, this paper conducted a participatory observation study by taking the cross-border co-creation practice of Guangxiu embroidery craftsmen and leather goods designers as the research object. It is found that the knowledge transformation between the two parties is based on the "cross-border cognitive co-construction", centered on the "integration of design resources" and guaranteed by the "co-transfer of bodily habits", and the cyclic interaction of the three elements forms the mechanism for knowledge transformation. This mechanism provides a new theoretical perspective for the contemporary translation of intangible cultural heritage skills and the cross-border innovation of leather goods design, and also offers a practical reference for the cross-border co-creation.