Against the background of rapid development of the digital economy and the mounting pressure to stabilize foreign direct investment (FDI), this paper leverages the “Broadband China” pilot policy as a quasinatural experiment of digital infrastructure construction. Based on panel data from 281 cities in China from 2005 to 2021, we employ a combination of the diff erence-in-diff erences (DID) method and propensity score matching (PSM) to investigate the impact of digital infrastructure construction on city-level FDI attractiveness and the underline mechanisms. The results show that the digital infrastructure construction, represented by the “Broadband China” pilot policy, has produced a significant effect in attracting FDI. Expanding market size, driving technological innovation, and enhancing industrial agglomeration are the intermediate channels through which digital infrastructure construction affects FDI attractiveness. Further analysis indicates that digital infrastructure construction has also signifi cantly promoted the attractiveness of FDI in high-tech manufacturing and high-tech service industries, thereby facilitating the optimization and upgrading of the FDI structure. It is noteworthy that the eff ect of digital infrastructure on attracting FDI is primarily derived from its capacity to mitigate the divestment of foreign capital. Additionally, the positive impact of pilot policy on the attractiveness of FDI exhibits a diminishing trend in diff erent batches. This paper not only provides supportive evidence for the government to augment its eff orts in digital infrastructure construction but also off ers valuable implications for achieving the goal of stabilizing FDI amidst new circumstances and challenges.