Abstract: By using provincial panel data from 2011 to 2022, and through the construction of an innovative two-way fixed effects model, this article analyzes in depth and elaborates on how digital inclusive finance plays a key role in promoting the upgrading of consumption among rural residents and its underlying impact mechanisms. Research shows that firstly, digital inclusive finance plays a key role in promoting the consumption levels and consumption strutures of rural residents, significantly enhancing their quality of life. Financial support policies for agriculture play a positive regulatory role, effectively amplifying the positive effects of digital inclusive finance in promoting rural residents’ consumption upgrades. Secondly, when digital inclusive finance reaches a certain stage of development, its role in promoting consumption growth among rural residents will gradually strengthen. This promotion mainly manifests as a “marginal increasing” non-linear trend. Thirdly, from the perspective of structural heterogeneity, the prevalence and depth of digital inclusive finance, as well as the level of digitization, have significantly impacted consumer behavior in rural areas. From a regional perspective, digital inclusive finance has had a significant impact on the consumption upgrade in rural areas of eastern China, which appears more prominent compared to central and western regions.To this end, it is proposed to build and improve digital inclusive financial infrastructure, increase fiscal support for agriculture, implement differentiated policies for the development of digital inclusive finance. It is hoped that these measures will provide reference experiences in promoting consumption upgrades among rural residents.