As the digital era continues to evolve, digital inclusive finance (DIF) has emerged as a transformative financial service model, significantly enhancing green total factor productivity (GTFP). Leveraging panel data from 30 Chinese provinces (2013–2023) alongside Peking University’s Digital Inclusive Finance Index, this study employs a two-way fixed effects model, mediation effect, and two-stage least squares regression to analyze the influence of digital inclusive finance on GTFP and its underlying mechanisms. Key findings reveal that: (1) DIF substantially boosts GTFP growth; (2) in the process of DIF's impact on GTFP, it will cause a decrease in carbon emission intensity (CEI), which indirectly has a positive effect on GTFP; and (3) its economic impact varies significantly across regions and stages of DIF development. These insights shed new light on how DIF can drive sustainable regional development, offering both theoretical and empirical foundations for policymakers pursuing greener economic transformation.