Abstract: Using provincial panel data from 2012 to 2022 for empirical testing, it was found that the digital economy has a promoting effect on achieving common prosperity, especially in the central and western regions as well as upstream industrial areas. Mechanism analysis shows that the digital economy can enable the government to implement development strategies that are in line with comparative advantages, thereby promoting the upgrading of industrial structure and enhancing the level of common prosperity. Further research has found that there is a threshold effect on the role of the digital economy in promoting common prosperity, and only when it is below the threshold value can the digital economy have a significant promoting effect on common prosperity. Therefore, it is recommended that the government strengthen its supervision and management of the digital economy, fully leverage its role in the digital economy, and increase efforts to implement income distribution policies.