In the era of digital economy， it is of great significance to explore how to use internet to optimize the allocation of land resources and enhance the farmers’ sustainable livelihood. It theoretically analyzed the impact-mechanism of internet and farmland circulation on sustainable livelihoods， discussed whether the farmland transfer-in or farmland transfer-out played an mediative role in the internet and farmers’ sustainable livelihoods， based on the data of China Family Panel Studies from 2014 to 2018， and empirically tested the impact of the internet on sustainable livelihoods. The results show that the Internet boosts the circulation of farmland through social embedding mechanism and promoting electronic commerce. At the same time， the internet improves the farmers’ sustainable livelihood by promoting the farmland transfer-in， which significantly promotes the accumulation of human， financial and psychological capital in the sustainable livelihood. Internet-driven farmland transfer-out significantly increases the immediate income of farmers. Finally， some suggestions are provided： strengthen the internet construction of the agricultural land exchange market to realize the organic integration of online and offline； expand the choice of farmers’ livelihood strategies in the context of the Internet and optimize the allocation of farmers’ livelihood capital； carry out the differentiated policies to promote the farmers’ sustainable livelihoods.