<p>In the context of the new technological revolution, the dissemination and application of digital technologies have become an important driver for improving the quality of life of rural residents. However, rural residents can only fully share the digital dividends when they possess a certain level of digital literacy. This study utilizes data from the 2020 China Rural Revitalization Survey to construct a comprehensive digital literacy evaluation index system for rural residents. The system encompasses five key dimensions: digital network access, digital device operation, digital resource acquisition, digital technology application, and digital use awareness. The digital literacy index is calculated using the entropy method, and its impact on rural residents’ life satisfaction is examined through an ordered probit model. The findings reveal that improved digital literacy significantly enhances the life satisfaction of rural residents. This conclusion remains valid after a series of robustness checks and endogeneity treatments. Mechanism analysis shows that digital literacy can improve the life satisfaction of rural residents by increasing household income, enhancing social trust, promoting healthy behaviors, and encouraging environmental protection behaviors. Heterogeneity analysis reveals that rural residents who are younger, have higher incomes, and reside in plain areas derive greater benefits compared to their middle-aged and elderly, lower-income, and non-plain counterparts. This study provides both theoretical and empirical foundations for enhancing the life satisfaction of rural residents and advancing digital inclusion in rural development.</p>