The traditional manufacturing industry is the backbone of China’s real economy, which serves as the cornerstone for fostering high-quality economic development. This paper analyzes the operational mechanism and impact of the digital economy on the integration of traditional manufacturing industry chain and innovation chain. To achieve these goals, this paper first establishes an evaluation indicator system from three dimensions, such as the industrial base, innovation ecosystem, and economic benefits. Additionally, the paper adopts a comprehensive approach, incorporating the coupling coordination degree model, spatial econometric model, and mediating effect model. The major findings include three points. (1) The digital economy plays a pivotal role in promoting the integration of traditional manufacturing industry chain and innovation chain by addressing capital mismatches, facilitating the concentration of technology talents, and promoting financial development. The integration contributes to the optimized allocation of scientific and technological resources with innovation in the upgrading of production factors. (2) The digital economy plays a nonlinear role in promoting the integration of traditional manufacturing industry chain and innovation chain. (3) The digital economy has a positive spatial spillover effect on the integrated development of traditional manufacturing industry chain and innovation chain.