With the swift advancement of the modern economy, the digital economy has progressively merged into various sectors. By leveraging cutting-edge information technology, it has become a pivotal strategy to enhance both production efficiency and quality, representing the inevitable route for the transformation and upgrading of modern enterprises and industries. As the digital economy continues to develop and spread, technology has not only given rise to numerous new industries but also fostered a conducive environment for the transformation and upgrading of traditional sectors. This study takes this context as its research backdrop, examining the development background of the digital economy. It outlines the impact mechanisms through which the digital economy influences industrial structure upgrading and subsequently identifies the specific effects of the digital economy on such upgrades. Furthermore, it constructs a reform paradigm for the digital economy aimed at facilitating the upgrading of industrial structures.