Based on panel data from the China Family Panel Studies （CFPS） from 2014 to 2022， this study empirically investigates the impact of digital literacy on farmers’ operational income and explores its underlying mechanisms using crop farmers as an example. The findings indicate that digital literacy has a significant positive impact on farmers’ operational income. Further analysis using quantile regression reveals a diminishing marginal effect： as the initial level of operational income increases， the positive effect of digital literacy gradually weakens. Heterogeneity analysis shows that digital literacy significantly boosts the operational income for crop farmers， mixed farmers， farmers in major grain-producing areas， and those in the eastern and central regions. However， it does not have a significant impact on farmers in non-major grain-producing areas or in the western regions. Mechanism analysis suggests that digital literacy promotes the growth of farmers’ operational income by optimizing the allocation of technological and land factors.. Therefore， in order to more effectively leverage the role of digital literacy in enhancing farmers’ operational income， it is essential to improve the digital literacy training system for farmers， formulate targeted support policies based on differences across farmers， and enhance social security system， thereby promoting income growth among farmers.