Nowadays, policy narratives as a communication strategy are frequently used by governments to persuade target populations and obtain policy support. However, few studies have empirically examined whether and through what mechanisms policy narratives can enhance policy support intention. To fill this gap, this study uses the case of energy conservation policy to conduct a survey experiment among 300 industrial enterprises in Liaoning, China. The findings indicate that policy narratives are effective in strengthening policy support intention; this effectiveness is achieved through a mediating variable of subjective policy understanding. In other words, only when policy narratives make target populations think they understand the policy can they show strong policy support intention. Additionally, we examine how policy narratives should be designed to enhance subjective policy understanding. The study finds that a simple narrative form (i.e. reducing policy details and using images and symbols) and a narrative content with positive incentives (i.e. showing material and reputational incentives) are two measures to enhance subjective policy understanding, which then leads to strong policy support intention. The implications of these findings for the policy narrative theory and policy implementation practice are discussed at the end of the article.