Abstract: In the era of digital economy,digital literacy is a key factor affecting rural residents' access to digital dividends as human capital. Using panel data from the Chinese Household Tracking Survey from 2018 to 2020,this study examined the impact of digital literacy on rural household financial participation in China from the perspective of digital ability application using a panel Logit model. The research results showed:firstly,digital literacy could increase rural household financial participation,and the results were still significant after endogeneity and robustness tests;secondly,digital literacy could increase rural household financial participation by expanding information acquisition;thirdly,it found that digital literacy had a greater impact on the financial participation of middle-aged and elderly rural households through heterogeneity analysis. Therefore,the Chinese government should increase the construction of network facilities and provide digital literacy education for rural residents,weaken the digital divide among farmers,and effectively enhance their participation in the financial market.