Abstract: Development zones are the main battleground for the growth of new productive forces, and leveraging the “build it and they will come” effect of development zone debt is crucial for enhancing total factor productivity (TFP). Using national tax survey data from 2007 to 2015, this paper examined the impact of financing platform debt in development zones on the TFP of enterprises and its underlying mechanisms. The study finds that financing platform debt in development zones significantly boosts the TFP of enterprises in the respective counties or districts. This effect varies based on the region and development stage of the development zone, the equity structure of the financing platform companies, and the ownership type of the enterprises. Mechanism analysis shows that, on the one hand, the debt of the financing platform in the development zone attracts enterprises to settle in the development zone by improving infrastructure construction, and giving full play to the effect of resource allocation, human capital and digital economy development. Additionally, it strengthens land investment competition, reduces enterprise land costs, and thereby promotes TFP improvement. The expansion analysis has found that the economic efficiency of the development zone financing platform debt “nest to attract the phoenix” can effectively compensate the debt risk.