Abstract: This study utilizes panel data from 2011 to 2019, covering cities in national demonstration areas for industrial transfer, to examine the impact of digital finance on the high-quality economic development of underdeveloped regions. Empirical methods such as the two-way fixed effect model, panel quantile regression, and mediation effect model are employed from the perspective of industrial agglomeration. The findings reveal that digital finance can stimulate high-quality economic development in demonstration areas, with a gradual increase in its marginal impact. Currently, industrial specialization agglomeration plays a crucial role as a mechanism through which digital finance influences high-quality economic development in underdeveloped regions, while industrial diversification agglomeration is not significant. Each dimension of digital finance has a significant impact on the high-quality economic development of underdeveloped regions. However, the degree of digital financial services and the depth of digital finance usage require the facilitation of industrial specialization agglomeration, whereas the coverage of digital finance directly affects the high-quality economic development of underdeveloped regions. Based on these research findings, corresponding measures and recommendations are proposed: encouraging the transformation and upgrading of traditional financial services in underdeveloped areas towards digitalization; emphasizing industrial specialization agglomeration during the process of industry undertaking; and enhancing the coverage of digital finance in underdeveloped regions.