Digital technology, as a new driving force for agricultural development, plays a crucial role in enhancing productivity and achieving rural revitalization. However, traditional agricultural production methods pose challenges to productivity improvement, highlighting the need to explore the impact and mechanisms of digital technology in this context. This paper empirically examines the effect and internal mechanisms of digital technology adoption on farm productivity using data from the 2022 China Rural Revitalization Survey (CRRS). The results indicate that: 1）the application of digital technology significantly enhances farm household production efficiency, a conclusion that remains robust across various tests. 2) Mechanism analysis reveals that digital technology improves efficiency primarily by enhancing farmers’ digital literacy and facilitating the adoption of productive services. 3) Heterogeneity analysis shows that the impact of digital technology is more pronounced among farmers with low-to-moderate production efficiency, those in non-food-producing regions, and those with higher educational attainment. To maximize the benefits of digital technology, efforts should focus on accelerating its adoption, improving farmers’ digital literacy and skills, and innovating digital service models and organizational mechanisms to bridge the technology gap across different groups and regions. These findings provide valuable insights for designing targeted digital agriculture policies, advancing smart farming, and enhancing farmers’ productivity.