Taking the balanced panel data of 30 provinces in China from 2012 to 2023 as samples, a comprehensive evaluation system of high-quality development and digital transformation of the textile industry is constructed. The two-way fixed effects, instrumental variables, threshold regression, mechanism test and adjustment effect model are used to systematically investigate the influence effect and mechanism of digital transformation on high-quality development of the textile industry. The results show that digital transformation significantly promotes the high-quality development of the textile industry, the benchmark regression coefficient is 0.2013, and the coefficient after endogenous treatment is 0.4020. The effect is more significant in the eastern region and regions with high informatization, high labor size and high economic development level. The threshold value of digital transformation is 0.1773, and the threshold value of financial development is 5.4656, indicating that digital empowerment has stage and conditional characteristics. Both technological innovation and industrial structure upgrading constitute effective transmission paths, and the role of technological innovation is stronger. Environmental regulation and government support can further strengthen the promotion effect of digital transformation. The research results provide an empirical basis for the collaborative upgrading of digital, intelligent and green textile industry.