Feng Qi’s constructed “theory of wisdom” is grounded in a broad epistemology, innovatively reinterpreting the traditional Chinese philosophical proposition of “transforming knowledge into wisdom.” It forms a dialectical development framework that progresses from empirical perception and knowledge accumulation to the generation of life wisdom, thus addressing the dilemma of separation between knowledge and wisdom in the modern context. This theory provides original philosophical resources and practical guidance for education in the new era to move toward high-quality development and transform from knowledge instillation to wisdom generation. Focusing on Feng Qi’s theory of wisdom, this paper systematically elaborates the inherent connotation, structural logic, and educational philosophical value of “transforming knowledge into wisdom” by integrating traditional Chinese philosophical wisdom, Marxist view of practice, and contemporary educational theories. The study holds that in educational practice, the theory embodies the organic integration of four aspects: subject construction, internal generation, dynamic development, and practice orientation. Based on the realistic concerns of educational reform in the new era, this paper puts forward implementation ideas from three dimensions: cultural education, school governance, and individual development, including updating utilitarian tendencies, constructing a wisdom-oriented education system, and establishing the life purpose of perfecting oneself and benefiting the world. It aims to provide a solid basis and feasible path for alleviating educational involution, promoting personality perfection and cultivating practical wisdom.