With　technological　transformations　such　as　big　data,　blockchain,　artificial　intelligence,　and　cloud　computing,　digital　techniques　are　infiltrating　the　field　of　finance.　Digital　finance　(DF)　is　a　resource-saving　and　environmentally　friendly　innovative　financial　service.　It　shows　great　green　attributes　and　can　drive　the　flow　of　financial　resources　towards　environmentally-friendly　enterprises,　thereby　promoting　green　low-carbon　circular　development　(GLCD).　However,　few　studies　have　explored　the　coupling　mechanism　between　DF　and　GLCD.　To　fill　this　gap,　this　paper　explores　the　effect　of　DF　on　GLCD,　and　established　a　mediating　effect　model　to　investigate　the　mechanism　of　DF　in　promoting　GLCD.　Additionally,　this　paper　established　a　random　forest　model　and　a　CatBoost　model　based　on　machine　learning　to　examine　the　relative　importance　of　DF　and　the　factors　affecting　GLCD.　The　results　show　that　DF　has　significant　positive　effects　on　GLCD,　and　technological　innovation　plays　a　key　role　in　the　effect　of　DF　on　GLCD;　meanwhile,　the　effect　of　DF　on　GLCD　shows　nonlinear　features　with　an　increasing　“marginal　effect”;　moreover,　both　DF　and　conventional　factors　have　significant　impacts　on　GLCD.　Our　study　highlights　the　effect　of　DF　on　GLCD　and　underscores　the　importance　of　developing　policies　for　DF　and　GLCD.　This　study　provides　an　empirical　basis　and　path　reference　for　DF　to　achieve　“carbon　peak,　carbon　neutralization”　in　China.　©　2023　by　the　authors.