Abstract: The integration of digital technology with rural human settlement governance has become a pivotal approach for enhancing governance efficacy within China’s Rural Revitalization Strategy. Based on 2020 microdata from the China Rural Revitalization Survey (CRRS), this study employs the OLS regression model along with the mediation and moderation effect models to examine how digital governance influences rural human settlement governance and its underlying mechanisms. Results demonstrate that digital governance significantly improves rural human settlement conditions. Moreover, rural collective action and institutional trust serve as significant mediators, while social capital and village cadres’ leadership function as positive moderators. Heterogeneity analysis reveals that these effects are more pronounced in hilly and mountainous regions, among villagers holding official positions, high-income households, and full-time farmers. Based on these findings, to support the development of beautiful and livable villages this paper suggests: improving digital governance platforms, activating collective action and institutional trust, cultivating social capital, and strengthening village cadres’ leadership capabilities.