This research aims to inspect the impact of digital financial inclusion on financial risk management in light of financial stability in the Egyptian banking sector. Using data collected from the Egyptian banking sector represented by (38) banks, during the period from (2014 – 2023), to analyze the data, using multiple regression analysis and structural equation model (SEM) by means of instantaneous structure analysis (JASP 0.19.1). The results showed that there is a significant impact of digital financial inclusion on financial risk management. Also, found a significant impact of digital financial inclusion on financial stability. Finally, the results indicate the existence a significant impact of financial stability on the relationship between digital financial inclusion and financial risk management on Egyptian banking sector. Study recommended the need to increase financial education among individuals through financial literacy, maximizing the benefit from technological developments and modern methods, increasing the spread of bank branches, and increasing number of active mobile money accounts. In addition, weak link between digital financial inclusion and financial risks suggests to banks that need to expand their agent networks and digitize their services by deploying (AI) and machine learning to attract people from all economic classes, which will be reflected in increasing investments in Egyptian banks.