The digital divide serves as a manifestation of uneven development.Bridging the digital divide and narrowing regional development disparities are critical pathways to achieving the goal of common prosperity.Drawing on data from five rounds of the China Household Finance Survey （CHFS） conducted between 2011 and 2019，this study employs a panel regression model to examine the impact of digital finance on the consumption level，consumption structure，and digital divide among urban and rural households.The findings indicate that digital finance can tap into latent consumer demand，boost domestic consumption，and elevate the consumption levels of both urban and rural households.Furthermore，greater diversification in the use of digital finance correlates with higher household consumption levels. Digital finance provides diverse consumption options and reshapes residents’consumption concepts and habits，increasing the proportion of hedonic and survival consumption，thereby improving the household consumption structure.From the perspective of household consumption，digital finance contributes to bridging intergenerational and regional digital divides，particularly between eastern and western regions. However，it also generates urban-rural disparities， exacerbating the urban-rural digital divide，especially among elderly population.