Local Grammar for compound lexical items, proposed within corpus linguistics, is a theory of lexical grammar. It not only systematically describes the internal structure of such items but also methodologically unifies lexis, grammatical structure and meaning, thereby holding significant implications for foreign language teaching. However, systematic research and pedagogical applications of this theory remain scarce. This study begins by clarifying the distinctions between local grammar for compound lexical items, pattern grammar, and function-oriented local grammar. It then employs examples to illustrate how this local grammar systematically characterizes the structural features of compound lexical items and reveals their intrinsic relationship with meaning. This study further explores the approach and practical pathways for applying compound lexical items and local grammar to foreign language teaching. It focuses on the construction of compound lexical item lists and the design of hands-on teaching procedures, while also proposing preliminary teaching content and activities integrated with artificial intelligence. This study opens a new dimension in research on corpus-assisted foreign language teaching and offers valuable insights for deepening the integration of corpus linguistics into pedagogical practice.