Abstract: Based on panel data from 30 Chinese provinces during 2012~2024, this study employs two-way fixed effect model, mediation model and threshold effect model to empirically analyze the impact of digital rural construction on the development of new rural collective economy and its underlying mechanisms. The results show that digital village development significantly promotes the development of new rural collective economy. Mechanism analysis indicates that this occurs through facilitating farmland transfer and enhancing rural human capital. Threshold analysis reveals that the promotional effect exhibits an inverted U-shaped nonlinear relationship as economic development levels increase. Heterogeneity analysis indicates that the impact is more pronounced in eastern regions and areas with higher digital village development levels.