This paper, based on multi-bar raschel lace’s design practice and real fabric analysis, and in-depth study on the peony patterns’ artistic characteristics, interprets the composition design of traditional peony pattern applied in lace, from the suspect of the formal beauty rules of composition, composition style and level performance of peony pattern. Research suggests that change and unity, harmonic and contrast, symmetry and balance, rhythm and rhyme are the rules of formal beauty of peony pattern design, and center type composition, triangular composition, scattered point composition and arc type composition are used in peony pattern’s composition design. This paper provides new theoretical and practical basis for traditional peony pattern’s composition design in the lace.