In the context of the digital economy, green development in regional manufacturing is essential for fostering high-quality economic growth and environmental sustainability. This study evaluates the level of green development and identifies obstacles in China’s regional manufacturing sector under the digital economy, offering governance strategies accordingly. Using 2022 data from 30 provinces, the entropy method measures green development levels, and the obstacle degree model identifies constraining factors. The results show that: (1) digitization and intelligentization are pivotal for green development, with economic benefits and sustainable development being the primary evaluative criteria. (2) There are significant regional disparities in green and sustainable development scores. High-scoring provinces like Beijing and Guangdong excel across multiple dimensions, while low-scoring provinces such as Gansu and Qinghai lag in digitization, low-carbonization, and intelligentization. (3) Key obstacles to green development include challenges in sustainable development, technology, and innovation. Addressing these issues requires targeted and comprehensive strategies. This research innovates by incorporating digital economy factors into green development evaluations, offering new insights and quantitative analyses for policymakers.