Abstract: As an important part of the national strategy in the new era, urban-rural integrated development is a key path to promote China’ s rural revitalization. In the era of digital economy, the construction of digital villages has become an important starting point for promoting the integrated development of urban and rural areas. Based on the panel data of 31 provinces from 2012 to 2023, this paper used the Moran index to test their spatial correlation, and used the spatial Durbin and threshold models to investigate the impact mechanism and effect path of digital village construction on urban-rural integration development. The results showed that, the construction of digital villages played a significant role in promoting the process of urban-rural integration development, and showed obvious spatial spillover effects, and the construction of digital villages in a certain area could not only promote the integration of local urban and rural development, but also promote the integrated development of urban and rural areas in surrounding areas. The promotion effect of digital village construction on the integrated development of urban and rural areas presented the characteristics of double thresholds, and when the level of digital village construction exceeded the second threshold, its marginal promotion effect was further enhanced. In this regard, local governments should continue to strengthen the construction of digital infrastructure, promote the integrated development of digital technology and rural industries and cross-regional linkage development, and formulate differentiated digital village construction strategies in stages according to the different levels of digital technology development, and take multiple measures to bridge the gap between urban and rural areas and promote common prosperity between urban and rural areas.