Abstract: Purpose/Significance Relying on industrial digitization and industrial organization theory, the synergistic relationship and synergistic mechanism of industrial foundation is explored to provide theoretical insights for the promotion of industrial foundation reengineering in China. Design/Methodology Adopting qualitative analysis method, this paper sorts out the synergistic relationship of industrial foundation reengineering, to explain the synergistic mechanism of industrial foundation reengineering, on the basis of the discussion of industrial foundation and industrial foundation reengineering. Conclusions/Findings Industrial foundation is a complex system which consists of interrelated and mutually restrictive subjects. To reconstruct industrial foundation means re-sorting out the relationship between enterprises and consolidating the underlying structure of the industry from the perspective of top-level design. Under the background of digital economy, the synergistic relationship of industrial foundation reengineering is manifested as complex systematization and organizational synergy, and the synergistic mechanism of industrial foundation reengineering can be subdivided into five dimensions which are taking the industrial chain as the link, enterprises as the main body, integration and innovation as the driving force, industrial clusters as the starting point, and quality improvement as the guarantee.