To study the impact of local debt management system reform on the development of digital inclusive finance has important theoretical and practical value for exploring fiscal and financial synergy. This paper selects the local debt management system reform as a natural experiment, and based on the panel data of China’s prefecture-level cities from 2011 to 2021, adopts the intensity differential method to study the impact mechanism of local debt management system reform on the development of digital inclusive finance. The empirical findings are as follows: first, the reform of local debt management system can effectively promote the development of digital inclusive finance; The second is the impact on the development of digital inclusive finance mainly through the re-allocation of credit resources, changing spending preferences and other channels; Third, there is a lag in the positive effects of the reform of the local debt management system, which on average starts to effectively promote the development of digital inclusive finance in the third year after the implementation of the policy; Fourth, this positive effect is not significant in areas with greater local financial pressure. In the case of small local financial pressure, the effect of local debt management system reform to promote the development of digital inclusive finance began to show in the current period. On this basis, suggestions on the coordinated development of local debt management system reform and digital inclusive finance are put forward from the perspectives of special debt, innovative supervision, and economic momentum transformation. This paper has enriched the relevant research on fiscal and financial synergy and digital inclusive finance, and provided theoretical support for deepening the reform.