This study investigates the influence of digitalisation capability on the performance of project management within small and medium-sized enterprises (SMEs) in China, with particular attention to the moderating influence of dynamic capabilities. The research aims to clarify how the interaction between these capabilities can improve project results and strengthen overall organisational effectiveness. A quantitative methodology was adopted, employing a structured questionnaire to gather data from 251 employees representing a range of SMEs. The study applied statistical methods, including regression analysis and moderation testing, to examine the connections among digitalisation capability, project management performance, and dynamic capabilities. The analysis demonstrated a significant positive association between digitalisation capability and project management performance, suggesting that SMEs that adopt digital tools are more likely to achieve improved project outcomes. In addition, the moderating role of dynamic capabilities was confirmed, indicating that enterprises with well-developed abilities in sensing, seizing, and reconfiguring are better positioned to harness digital resources to enhance project execution. This research extends the current body of knowledge by addressing a notable gap concerning SME digital transformation. It offers empirical evidence on the interaction between digitalisation and dynamic capabilities, thereby providing practical guidance for SMEs seeking to refine their project management approaches and strengthen their position in an increasingly digitalised business environment.