The modernization and development of industrial chain supply chain in the era of digital economy is an important content to cultivate new quality productivity, maintain industrial competitiveness and realize industrial modernization. After the promotion effect of digital economy on the modernization and development of industrial chain supply chain, this paper takes China’s digital economy data from 2012 to 2022 as the research object, designs the evaluation index system of the development level of digital economy, and measures the development level of digital economy by using entropy value method and Kernel density estimation method. The overall situation of China’s digital economy development level is analyzed, and the dynamic evolution trend of digital economy development level is explored. Then, based on the threshold regression model, the benchmark regression and threshold effect analysis of the relevant inϐluencing factors of the digital economy-enabled industrial chain supply chain modernization and development are carried out. 2012-2022 China’s digital economy shows a steady upward trend, and its average annual growth rate reaches 1.8%, and the Kernel Density value decreases from 0.0474 in 2012 to 0.0425 in 2022, with the digital economy of each region level gap decreases. For every 1% increase in the level of digital economy development, the level of industry chain supply chain modernization and development is increased by 1.407%, and there are two threshold effects of economic double cycle and digital technology level for digital economy-enabled industry chain supply chain modernization and development. Enhancing the level of digital technology promotes the enhancement of the level of international and domestic economic double cycle, which in turn improves the level of modernization and development of industrial chain supply chain.