Abstract: Realizing the common prosperity for all people is the essential requirement of Chinese path to modernization, and one of the difficulties lies in narrowing the gap between urban and rural areas. In the practice of building a common prosperity demonstration zone, Huzhou, Zhejiang Province firstly proposed the concept of creating "undifferentiated urban and rural areas", which has attracted widespread attention. As a practical case, its implementation path of empowering rural innovation and entrepreneurship through digitalization to create indiscriminate urban and rural areas is worthy of in-depth study. Introducing innovation and entrepreneurship in the context of digitalization as an intermediary variable, selecting Huzhou's economic and social development statistics and related available data from 2005 to 2020, and empirically studying the impact mechanism of digitalization on creating indiscriminate urban and rural areas. The results show that: digitalization has a significant positive impact on regional innovation and entrepreneurship; regional innovation and entrepreneurship has a significant positive impact on undifferentiated urban and rural areas construction ; only digital innovation without the support of corresponding entrepreneurial activities has no significant impact on undifferentiated urban and rural areas construction, and the "digital divide" has a negative impact on undifferentiated urban and rural areas construction. Based on this, countermeasures such as promoting the "new digital infrastructure" to sink into the countryside, strengthening the main body of digital innovation and entrepreneurship in the rural areas, improving the digital literacy of rural residents, and empowering urban and rural multivariate co-governance with digital intelligence in the new journey of modernization to realize common prosperity for all people.