Digital transformation and green innovation are critical to firms’ competitive advantage and, thus, firms desire to make digital transformation enhance green innovation. However, the relationship between the digital transformation on green innovation is unclear. Drawing on digital empowerment, we delineate types of digital transformation and their impacts on green innovation in manufacturing firms. Our empirical results indicate that production digitalization and service digitalization have a significant promoting effect on both of green technological innovation and green management innovation. However, the effect of production digitalization on green management innovation is stronger than that of service digitalization. Moreover, environmental regulation enhances the positive effect of service digitalization on green technological innovation and green management innovation. While it enhances the effect of production digitalization on green management innovation. Peer firms’ green innovation strengthens the effect of service digitalization on both of green technological innovation and green management innovation.