In an era marked by the explosive rise of digital trade, its penetration across the entire industrial chain is transforming the technological economic paradigm, reshaping the global industrial division of labor network, and driving the evolution of the labor division evolution of the global value chain (GVC). Based on panel data from 44 industries in 62 countries from 2008 to 2018, this paper uses the length of the GVC as a substitute for its labor division evolution to explore the impact of digital trade development on the labor division evolution of the GVC. The study finds that the development of digital trade significantly promotes the labor division evolution of the GVC, passing the endogeneity and robustness tests. Reducing trade costs and strengthening industrial linkages are its two mechanisms. Among these, digital trade has a stronger driving eff ect on the labor division evolution of the GVC in manufacturing, especially capital-intensive manufacturing and downstream sectors. Digital trade sourced from foreign digital inputs plays a positive driving role, while domestic digital inputs also deserve attention. This research provides theoretical and policy references for the development of digital trade to promote the labor division evolution of the GVC.