In the era of rapid expansion of the digital economy and the gradual erosion of demographic dividends, enhancing digital literacy provides a new opportunity for the retired population to re-realize their self-worth and harness their comparative advantages. Based on the China Family Panel Studies (CFPS) data, this paper empirically investigates the influence of digital literacy on retirees' re-employment transitions by employing binary Logit and Probit models. The results show that the improvement of digital literacy notably fosters retirees' transition into reemployment, and this promoting effect is stronger among those with greater learning investments. The primary mechanisms underlying this enhancement lie in social integration and social capital augmentation, while the effectiveness of information acquisition depends on retirees' ability to discern information. Notably, the positive impact of improved digital literacy on reemployment is more pronounced among older adults with higher educational attainment and in regions with lower levels of digital economic development. It is recommended that the delayed retirement ages be formulated differentially to facilitate the construction of a digitally inclusive and age-friendly society.