Abstract: This article is based on provincial panel data from 2011 to 2020.By constructing a fixed effectsmodel, it verifies the impact of the digital economy on the development of the service industry, productiveservice industry, and life service industry, and proposes relevant countermeasures and suggestions.Research has shown that: 1) The advancement of the digital economy notably enhances the growth of both the service sect-or and the industries focused on productive services, but its promoting effect on the life service industry isnot significant.2) In the eastern region, the impact of the digital economy is profoundly positive, especially in stimulating the productive service industry, but this effect is not significant in the central and western regions; Before 2015,the promotion effect of the digital economy on the service industry and productiveservice industry was significantly higher than that after 2015.3) The development of the digital economyhelps to promotethe optimization of theservice industry structure and improve the overall quality of serviceindustry development; The developmentof the digital economy relies on technological innovation and industrial agglomeration.Based on the research findings, this article aims to accelerate the digital transformationof the service industry and promote the sharing of digital dividends among different regions; Increase support for the transformation of the service industry in the central and western regions, and bridge the "digital divide" between regions; Propose countermeasures and suggestions to promote the interconnection of digital resources in the industrialchain of modern service industry.