Abstract: The growing sophistication of digital technologies is driving the digital, intelligent, and networked transformation of rural governance. In this context, farmers, as key participants in rural governance, play an essential role in enhancing its effectiveness. A critical factor determining their ability to contribute effectively is their level of digital literacy. This paper constructs an analytical framework of “farmers' digital literacy—social capital—rural governance participation” to explore this dynamic. Using data from the 2022 China Land Economic Survey (CLES) and applying the Oprobit model alongside the CMP method, the study empirically examines the impact of farmers' digital literacy on their participation in rural governance and the mechanisms behind this relationship. Particular attention is given to the role of social capital and the differentiated impact of digital infrastructure development. The findings reveal that farmers' digital literacy has a significant positive effect on rural governance participation, a conclusion that holds even after robustness and endogenous tests. Social capital is shown to mediate the relationship between digital literacy and governance participation. Additionally, under conditions of advanced digital infrastructure, the effect of digital literacy on governance participation is even more pronounced. To enhance farmers' involvement in rural governance and improve its efficiency, the paper offers several policy recommendations, including strengthening systems for cultivating digital literacy, improving digital infrastructure in rural areas, and expanding avenues for farmers' participation in governance.