A modern industrial system is the material and technological foundation of a modern country, and building a modern industrial system is a necessary condition for promoting high-quality development and the key to winning international competitive advantages. On the basis of constructing the index system, the provincial panel data of in China from 2011 to 2022 were used for empirical analysis. The results show that the digital economy has significantly promoted the construction of a modern industrial system.The efficiency of factor allocation plays an intermediary role in the impact of the digital economy on the modern industrial system. The impact of the digital economy on the modern industrial system has a significant spatial spillover effect.