The impact of enterprise digital transformation on total factor productivity and its mechanism were empirically tested based on the sample of Shanghai and Shenzhen A-share manufacturing listed companies from 2011 to 2022.It is found that the digital transformation of enterprises can transform data into production factors, optimize production processes, improve the efficiency of resource allocation, and improve total factor productivity.The mechanism analysis shows that digital transformation can enhance innovation efficiency, promote enterprises to accelerate process change and business model innovation, and further improve total factor productivity. Heterogeneity analysis shows that the promotion effect of enterprise digital transformation on total factor productivity varies with the nature of property rights, the nature of high-tech enterprises and the degree of regional marketization. It is suggested that the government should strengthen investment in digital infrastructure and improve innovation policies, and enterprises should actively embrace digital transformation, strengthen data governance and improve the efficiency of resource allocation.