Abstract: The academy is a special form of cultural and educational institution in ancient China. It has lasted for 1000 years or so, which presents a unique vitality of the academy. The spirit of the academy is the core and essence of the academy, and it also a condensed collection of fine traditional Chinese civilization. Regarding the inheritance and innovation of the spirit of the academy, it is necessary to keep pace with the times. The cycle system of understanding, practice, and re-understanding can be also sorted to the inheritance and innovation. The key point is to grasp its core and take promoting moral education and nurturing talents as the starting point. The true essence of education rooted in traditional Chinese culture can be sought as well. Through the re-understanding of the genius loci, the humanistic and scholarly spirit of the academy, attention is paid to three aspects. The three aspects are the inheritance subject as the main body, the environmental medium as the entity, and the institutional style as the form. They are transplanted into the framework of the construction of the contemporary education community in universities. As a result, the modern transformation of the academy mechanism can be achieved, and the educational development can be realized in the new era.