Based on the provincial panel data from 2000 to 2020, the evaluation index system of circulation digitalization and industrial revitalization is constructed, and the level of circulation digitalization and industrial revitalization in each province (city) is calculated by using entropy method. This paper empirically tests the effect and mechanism of circulation digitalization on industrial revitalization. The study finds that the digitalization of circulation can significantly promote the level of industrial revitalization, which is still valid after the robustness test and endogenous treatment. The heterogeneity analysis shows that, in terms of the impact of digital circulation on industrial revitalization, the central and western regions are larger than the eastern regions, the non pilot regions are larger than the pilot regions, and the Yangtze River Economic Belt regions are larger than the non Yangtze River Economic Belt regions. The analysis of the impact mechanism shows that the circulation digitalization will produce positive economic effects from five aspects: technology application, entrepreneurial environment, domestic market, foreign capital quality and open layout. The circulation digitalization promote the level of industrial revitalization by promoting technological achievements, improving rural entrepreneurial activity, improving the level of marketization, helping to attract investment, and expanding the opening to the outside world.Among the five transmission mechanisms, technology achievement plays a leading role.