The development of digital economy provides a new opportunity for China to change its development mode and realize high-quality economic discovery. In this context, the panel data model was used to estimate the impact of digital economy on total factor productivity in my country, and further decomposed total factor productivity into technological progress and technical efficiency, and explored the impact mechanism of digital economy on total factor productivity. The results show that: first of all, digital technology can promote the progress of TFP on the whole, and after the endogenous processing and robustness test, this conclusion is still relatively stable. Secondly, from the perspective of total factor composition, digital economy promotes the improvement of technical efficiency and plays a major role in the progress of total factors. No matter for regions with low technical efficiency or areas with high technical efficiency, digital economy can promote the improvement of technical efficiency. Finally, the overall impact of digital economy on technological progress is not significant. Only regions with high technological progress can make full use of the advantages brought by digital economy and further improve the technological level.