Based on the perspective of digital economy, the hypothesis that digital economy can promote the upgrading of industrial structure in Foshan by enabling industrial agglomeration, stimulating consumer demand and generating new investment demand are put forward. The entropy weight method and the regression model are used to calculate the development level of the digital economy in Foshan City, and to make an empirical analysis of the relationship between the digital economy and the industrial structure upgrading. The results show that the development level of digital economy in Foshan City is lower than that in Guangzhou, but the gap is narrowing. Digital economy has an obvious role in promoting the transformation and upgrading of industrial structure. The higher the level of government regulation and urbanization, the more likely the transformation and upgrading of the industrial structure will be promoted, but the degree of marketization and the effect of foreign investment are not significant. Digital economy can promote the transformation and upgrading of Foshan's industrial structure by enabling industrial agglomeration, stimulating consumer demand and creating new investment demand.