Improving the total factor productivity of digital enterprises is a necessary way to promote high-quality development of the digital economy, and the effective use of industrial policies will play an important role in promoting this process. Using the panel data of Chinese listed companies in the digital industry from 2007 to 2020, this paper empirically examines the impact of four types of industrial policies, namely, government subsidies, tax incentives, credit support and market access, on the total factor productivity of digital enterprises. The study found that credit support significantly promoted the total factor productivity of digital enterprises, while market access played a significant negative role. Government subsidies and tax incentives had no significant effect on the growth of total factor productivity of digital enterprises. This conclusion remained stable after a series of robustness tests. Furthermore, industrial policies have heterogeneous effects on the total factor productivity of digital enterprises in terms of property rights, enterprise size, and enterprise lifecycle. Specifically, credit support has a clear effect on improving the total factor productivity of non-state-owned, small and medium-sized, and growing digital enterprises, while market access has a significant inhibitory effect on non-state-owned and mature digital enterprises. The results of mechanism testing indicate that credit support and market access respectively affect the total factor productivity of digital enterprises by improving corporate financing constraints and intensifying corporate overinvestment. The research conclusion of this article has certain enlightening significance for the government to formulate more precise and effective industrial policies.