The digital economy is visualized, a seven-sector DSGE model is constructed, and the economic effect of digital economy on common prosperity is studied through impact simulation. Taking the data of 209 prefecture-level cities as samples, the panel fixed effect model is used to empirically analyze the influence of digital economy and industrial structure upgrading on common prosperity. The results show that the development of digital economy in China is helpful to promote the upgrading of industrial structure and promote the process of common prosperity from the two dimensions of "commonality" and "affluence"; Industrial structure upgrading is an intermediary variable for digital economy to promote common prosperity. The faster the digital economy develops, the stronger the marginal impact of industrial structure upgrading on common prosperity. From the secondary indicators of digital economy, digital technology, digital finance and Internet economic platform are all helpful to improve "affluence", but the influence of digital technology on "commonality" is not significant. In this regard, it is suggested that while vigorously guiding the digital economy to upgrade the industrial structure, more attention should be paid to solving the negative externalities of digital technology, so that the digital economy dividend can be better shared by all people, thus accelerating the realization of the goal of common prosperity.