["Population, Space and Place, Volume 32, Issue 4, May 2026. ", "\nABSTRACT\nThe large‐scale migration of rural labourers to urban areas has emerged as a prominent characteristic of China's socioeconomic development over the past few decades. This study aims to investigate how digital finance development affects rural‐to‐urban migration in China. Utilising a sample that captures individual data on rural labour force dynamics, our empirical analysis reveals that digital finance development significantly reduces rural‐to‐urban migration, and the coverage scope of digital finance is the critical dimension in reducing this migration trend. Mechanism analysis shows that digital finance development reduces migration through three channels: enhancing rural entrepreneurial activity, facilitating the expansion of local small and medium‐sized firms, and promoting the diversification of local industries. Further heterogeneity analysis reveals that the reducing effect of digital finance development on outward migration of rural workers is more significant for rural labours with lower education, in areas with weak traditional finance, and in areas with strong Confucian culture. Our findings contribute to research on rural labour mobility and provide new insight into the economic impacts of digital finance development.\n"]