<p>This study investigates how digital financial capability affects the efficiency of household financial asset portfolios in China. Our findings suggest that enhanced digital financial capability enhances portfolio efficiency. Households with greater digital financial capability are more likely to diversify their investments and utilize online resources, leading to more efficient financial asset management. The analysis also demonstrates that the impact of digital financial capability is particularly significant among disadvantaged groups, such as those with lower physical or human capital and limited access to traditional financial services.</p>