This study systematically reviews empirical literature from 2014 to 2024 on interactive parent-child shared reading and vocabulary development in preschool children, both domestically and internationally, employing a combination of quantitative and qualitative analysis to explore the mechanisms through which such reading influences vocabulary acquisition among children aged 3–6. The findings indicate a significantly positive correlation between interaction frequency and vocabulary development (effect size d = 0.82). Among various interaction strategies, open-ended questions were shown to increase new vocabulary acquisition by 12%–18%, and the "questioning + role-playing" model resulted in significantly higher vocabulary retention compared to silent shared reading. From a linguistic perspective, interaction mechanisms such as "scaffolded input" and "comprehensible output" align with Vygotsky's Sociocultural Theory and Krashen's Input Hypothesis. By integrating age-specific interaction strategies, this study offers a theoretical foundation and practical guidance for family-based vocabulary education.