Abstract: Based on the perspective of human capital, this study discusses the influence of digital economy on promoting the transformation and upgrading of industrial structure and the mechanism behind it, and conducts econometric analysis by measuring the development level of digital economy and industrial structure in 31 provinces of China from 2015 to 2019. The empirical results show that digital economy has a positive impact on the rationalization and optimization of regional industrial structure. The promoting impact of digital economy on the transformation and upgrading of industrial structure is realized by improving regional human capital level. Further mechanism research finds that the transformation and upgrading of regional industrial structure by digital economy is affected by the degree of local marketization. The above empirical results show that from market-oriented transformation, digital economy is conducive to promoting the level of human capital, thus promoting the transformation and upgrading of local industrial structure.