<p>A strong financial system is essential for promoting green innovation, especially in India, where a lack of capital presents serious obstacles. Although the importance of government subsidies, economic growth, and environmental regulations in promoting green innovation has been thoroughly studied in the past, less is known about the impact of digital finance. Using panel data from 78 cities between 2010 and 2023, this study examines how digital finance affects the extent and efficacy of green technology innovation in India. Using internet infrastructure development and mobile payment penetration as instrumental factors, we use an instrumental variable regression with the two-stage least squares approach to address potential endogeneity concerns. The dependability of our findings is confirmed by robust tests, which include lagged independent variables and alternative model parameters. According to our findings, digital finance greatly boosts green innovation by reducing financial barriers, expanding access to capital, and allocating resources as efficiently as possible. Regional differences show that South Indian cities are most affected, followed by those in the North and West, while Central India is least affected. These results highlight the revolutionary significance that digital finance has played in quickening the green economic transition in India. To fully realize its potential as a catalyst for sustainable innovation, policymakers must give digital financial inclusion and infrastructure development top priority.</p>