Green innovation in manufacturing enterprises is crucial for achieving sustainable development, and supply chain digitalization represents a significant avenue to promote such innovation. This research utilizes China’s pilot policy on supply chain innovation and application in 2018 as a quasinatural experiment, analyzing data from listed A-share manufacturing enterprises in China between 2013 and 2022. By employing the Difference-in-Differences (DID) method, we empirically investigate how supply chain digitalization impacts green innovation among Chinese manufacturing enterprises while also exploring potential mechanisms and variations. Our findings reveal that supply chain digitalization significantly improves the efficiency of green innovation within manufacturing enterprises located in pilot cities. Additionally, it influences enterprise green innovation by enhancing their digitization level, reducing reliance on specific customers, and increasing investment in R&D activities. Notably, the impact of supply chain digitalization on green innovation is more pronounced for stateowned enterprises, those situated in western regions, and those with lower levels of regional market integration. Overall, when harnessing the potential benefits of supply chain digitalization for promoting green innovation, attention should be given to critical points as well as regional characteristics.