<p>Eradicating poverty is a fundamental goal in achieving sustainable development. As a new form of economic activity, digital economy has become integrated into all aspects of human life. Can digital economy development contribute to reducing poverty? Using the panel data from 66 countries involved in the Belt and Road Initiative (BRI) between 2009 and 2021, this paper applies the two-way fixed effects model, dynamic panel model, instrumental variable model, and mediation effect model to examine the poverty reduction effect of digital economy and its underlying mechanisms. The findings reveal that: (1) Both digital economy index and poverty incidence in BRI countries have significantly improved, though they display distinct spatial differentiation characteristics; (2) Digital economy has a strong effect on reducing poverty, helping BRI countries meet their poverty alleviation goals. Specifically, a one standard deviation increase in the digital economy index corresponds to a 6.241% point decrease in poverty incidence; (3) The poverty reduction effect of digital economy operates through several mechanisms, including employment promotion effect and trade openness effect; (4) Educational development level has a threshold effect on the digital economy’s poverty reduction impact, with the marginal effect strengthening significantly once a certain level is surpassed; (5) The impact of digital economy on poverty reduction differs notably across various research time periods, economic development levels, and location conditions.</p>