This study investigates the effectiveness of digital leadership in promoting organizational sustainability, with a specific focus on the mediating role of digital leadership capability. The research explores how digital leadership impacts sustainable performance within Chinese construction organizations. Using structural equation modeling (SEM), the study analyzes data collected from 529 respondents across various organizations. The findings reveal that digital leadership significantly enhances organizational sustainability both directly and indirectly, through digital leadership capability. These results underscore the importance of digital leadership as a critical factor in guiding digital transformation and achieving long-term sustainable outcomes. The study contributes to the literature by highlighting digital leadership’s role in fostering organizational adaptability and sustainability in rapidly evolving digital environments.