Against the concern that digitalization may damage employees’ growth and development, this study, based on signaling theory, reveals that HRM digitalization is conducive to employee thriving at work. Specifically, we explored how HRM digitalization promotes employee thriving at work through strengthening HRM system as a positive signaler. Besides, we studied the amplifying effect of employee participation in goal setting, a participative HRM policy. Through multi-wave and multi-source data across 2077 employees and 128 HR directors from 128 enterprises, results showed that HRM system strength partially mediated the relationship between HRM digitalization and employee thriving at work; employee participation in goal setting positively moderated HRM system strength-employee thriving at work relationship, and the HRM digitalization-HRM system strength-employee thriving at work relationship. Based on these findings, we discuss underlying theoretical and practical implications and outline future research directions.