This study explores how Chinese ancient cultural memory is constructed, and specifically how it is reconstructed through Chinese Xianxia TV dramas during the past five years. Ancient Chinese culture has become a hit in Chinese popular culture today, in which Xianxia TV dramas draw the biggest audiences. This study focuses on the ways, namely the transformations between cultural memory as storage memory to cultural memory as living functional memory, in which the Xianxia genre reconstructs the past. Bringing together a ritual view of communication, cultural memory and participatory culture, it applies a cultural approach to communication, which refers to the production and the fandom reception of Xianxia TV drama. Meanwhile, the perspective of culture industry provides a critical dimension to look into this highly commercial genre. This study is based on the analysis of content and representations of the theme song lyrics, posters and the general narratives of six selected Xianxia TV dramas, as well as a virtual ethnography of fan-generated videos and their comments. The findings suggest that, the reconstruction of ancient Chinese cultural memory in Xianxia TV dramas is a complex interplay between the culture industry logics of Xianxia production and the passionate participatory fan culture. The limited representations of the past in the series are absorbed and practiced by the fan audiences. Through fan practices, the fans extend the media text with their passion and knowledge of ancient culture, attaching the cultural memory into their present real-life cultural identity and hence vigorously transforming cultural memory from storage memory into functional memory.  This study speaks to the lack of bottom-up perspectives in the studies of the ancient culture revival trend in China, and it contributes to a deeper scholarly understanding of the Xianxia genre.