Objective/Meaning  The purpose of this paper was to explore the influence mechanism of digital literacy on the consumption upgrading of rural households, and to provide reference for the release of rural consumption potential under the rural revitalization strategy.

Methods/Procedures  Based on the theory of empowerment, the index system of digital literacy was constructed in this paper. Then, based on the data of China Household Finance Survey in 2019, the empirical analysis method was used to verify the path of digital literacy on the consumption upgrading of rural households.

Results/Conclusions  The study found that digital literacy had significant positive impact on promoting the consumption upgrading of rural households, mainly through the two paths: improving the efficiency of Internet use and promoting the accumulation of social capital. In addition, the promotion effect of digital literacy showed differences in the three dimensions: age, region and cultural level. Among the various dimensions of digital literacy, the use of digital finance had the most significant impact on the consumption upgrading of rural households. Based on these findings, it was recommended to focus on the digital empowerment by strengthening the construction of digital infrastructure, perfecting the social service system, and improving the digital literacy of rural residents, so as to promote the consumption upgrading of rural households.