This study examines the impact of industrial embeddedness on supply chain resilience from the perspective of supplydemand adaptability, using data from Ashare listed companies and their customers over the period 2007-2023 The results reveal a significant inverted Ushaped relationship, which remains robust across multiple tests Mechanism analysis identifies two key pathways: relationship structure reinforcement and cost structure optimization Heterogeneity analysis shows that demandside industrial embeddedness has a more pronounced inverted Ushaped effect than its supplyside counterpart Stratified analysis further indicates that overall industrial embeddedness significantly affects resilience in the supplydemand matching and stability layers; supplyside embeddedness influences the upgrading layer; and demandside embeddedness affects both the matching and upgrading layers This study contributes to the literature on supply chain resilience and offers policy insights for strengthening China’s supply chains through industrial embeddedness