With the continuous expansion of the enrollment scale of master's degree students in China's colleges and universities, the shortcomings of college education are increasingly highlighted, and the ability of master's degree students to solve practical problems can hardly meet the needs of enterprises and society. At this stage, how to crack the problem of theoretical-practical fragmentation of master's students and cultivate them into talents to meet the needs of society has become a problem that needs to be solved in the cultivation of master's students in Chinese universities. Although the case teaching and "dry school" talent cultivation methods are widely used in the cultivation of master students in management science and engineering, the teaching effect is unsatisfactory due to the limitations of the methods themselves. In order to solve the problem of fragmentation between theory and practice of master's degree students, this team proposes a new talent cultivation mode - the talent cultivation mode of master's degree students in management science and engineering sublimated by contextual teaching method, based on the connotation of society's demand for talents graduated from universities and upholding the education concept of leading by demand and keeping pace with the industry. This model combines case teaching and the "learning by doing" method of talent cultivation, aims to improve students' ability to analyse and solve problems, cultivates students to meet the needs of society as the teaching result, adopts constructivist theory to explore the constructive mechanism of the sublimation of contextual teaching method, and explores the teaching mode of the sublimation of contextual teaching method. The five teaching links of "case + situation + questioning + reflection + induction" and the four teaching contexts of "before, at the beginning, during and after the class" are carefully designed, and system dynamics is used to simulate and analyse the talent cultivation mode of this method. The results of the system dynamics simulation show that the sublimation of the contextual teaching method can organically combine the case teaching talent cultivation with the "learning by doing" talent cultivation, which will make the effect of talent demand more immediate.