<p>While businesses face the dual challenges of advancing digitalization and achieving environmental sustainability, balancing these transformations has become a pressing issue in the contemporary economy. This research explores how the progression of digitalization influences corporate green innovation. Using panel data from China’s A-share listed companies from 2010 to 2020, we integrate both theoretical exploration and empirical analysis to assess this dynamic. Our results demonstrate an inverted U-shaped association between enterprise digital transformation (EDT) and green technology innovation, with an inflection point occurring at 3.230. The chain intermediation model reveals that EDT primarily facilitates green innovation by raising firms’ environmental awareness and innovation capabilities. Moreover, our study finds that environmental regulation amplifies the beneficial impact of digital initiatives on eco-innovation outcomes. Heterogeneity tests indicate that the non-linear relationship is particularly pronounced in pollution-intensive industries and the manufacturing sector. The research provides crucial policy insights aimed at fostering green development within enterprises, with a specific focus on the digital realm.</p>