Rapid digitalization and an aging population are leading to an increasingly prominent age-based digital divide among the world’s elderly population. This study focuses on China, one of the most rapidly aging and digitalizing countries in the world. Employing a mixed-method approach, this research examines how elderly individuals experience the digital transformation and the associated digital divide. The findings suggest that the elderly interviewees encounter multiple barriers to learning and using digital technologies, which highlights the significant role of social support and networks in facilitating their adaptation to the digital society and lifestyle. Attitudes toward digital engagement and digitalization vary greatly among the elderly, ranging from being optimistic to feeling left behind and having multiple concerns. Our findings further reveal that the Chinese government has implemented numerous digital apps tailored to the demands of the elderly and provided training opportunities to bridge the gray digital divide. This emphasizes the responsiveness and adaptiveness of Chinese authorities in addressing pressing societal issues. However, we identify a gap in digital outreach, as most elderly interviewees have limited awareness of government digital inclusion policies and programs. This article contributes to digital divide research and offers practical implications for countries grappling with the gray digital divide.