Abstract: Poverty reduction through digital technology can play a positive role in Chinese rural poverty reduction. Based on the provincial panel data from 2006 to 2019, the rural poverty reduction effect of digital economy is analyzed, and the results show that, digital economy has a positive poverty reduction effect, but there is heterogeneity. In contrast, the poverty reduction effect of digital economy is more obvious in the central and western regions, regions with higher development level of digital economy and regions with higher poverty level. The mechanism of digital economy to alleviate rural poverty is to improve residents' income and increase job opportunities. Finally, according to the research conclusions, the countermeasures and suggestions are given from the aspects of system guarantee, digital infrastructure construction and science and technology supply.