Hydrological changes caused by dam construction are among the primary drivers of global freshwater biodiversity decline. To assess the current status of fish community diversity and examine the impacts of cascade hydropower development on fish diversity, this study employed environmental DNA (eDNA) technology from 2023 to 2024 to conduct seasonal surveys at 18 sampling sites across six river segments separated by five dams in the downstream section of the Fujiang River. The study aimed to uncover the temporal and spatial dynamics of fish diversity and community structure, as well as to analyze the influence of environmental factors on these patterns. The results identified 84 fish species spanning 60 genera, 19 families, and 7 orders, including 2 nationally protected species, 11 endemic species of the upper Yangtze River, and 13 alien species. The cascade dams were found to have significantly reduced fish diversity compared to historical records, with a marked decline in native species and a rise in alien species, contributing to the miniaturization and homogenization of fish communities. Environmental factor analysis revealed that chemical oxygen demand (COD), dissolved oxygen (DO), total dissolved solids (TDSs), electrical conductivity (EC), and reservoir formation time were significant drivers of fish community structure and diversity. This study provides essential baseline data on fish diversity under the influence of cascade hydropower development in the Fujiang River. It also offers valuable insights into the current status of fish resources and supports efforts in fish conservation and aquatic ecosystem management in the region.