In the current environment, the product service system (PSS), which can bring more value to customers and be helpful to sustainable development, is important for design education. This study proposed a new design method based on the innovation requirements of the product service system (PSS) in the growing market. The analogical reasoning (AR), with mythology as the analogical source, is the basis of this new design method. In order to obtain inspiration from mythology and apply them into design, the AEIOU framework is used to analyze the design problem and the mythology in feature and structure. In this study, we first reviewed previous related works and illustrated the framework of new design method. And then, we demonstrated an example to verify the new design method. Finally, this article puts forward suggestions and directions for further research of the method. Based on this new design method, designers can utilize mythology to provide innovative solutions of PSS in design education.