In the context of the digital economy era, digital development has become an effective path to promote advanced manufacturing enterprises to move up the value chain. Based on the data of Chinese A-share listed companies from 2015-2021, this paper investigates the impact of digital development on service innovation of advanced manufacturing enterprises and the intrinsic mechanism of action. The results show that: digital development can promote service innovation of advanced manufacturing enterprises; the dynamic capability of enterprises plays a mediating role in the relationship between digital development and service innovation of advanced manufacturing enterprises; non-sedimentary redundant resources play a positive moderating role between dynamic capability and service innovation of enterprises, while sedimentary redundant resources play a negative moderating role between dynamic capability and service innovation of enterprises. The findings of the study are intended to provide an important basis for theoretical research and practical exploration of service innovation in advanced manufacturing enterprises.