The development of digital technology has transformed the way university students’ interaction in carrying out both academic and social activities. Digital media provides opportunities to access information, communicate, engage in discussions, and build social support. However, unregulated use may also be associated with various psychological challenges. This article aims to analyze the dynamics of students’ digital interactions and their implications for psychological well-being, as well as to identify factors that may support or challenge students’ psychological well-being in digital environments. This study employed a literature review method by analyzing relevant scientific articles on digital interaction, social media use, psychological well-being, fear of missing out (FoMO), social media fatigue, social media addiction, doomscrolling, cyberbullying, self-control, and student resilience. The literature was analyzed descriptively and thematically by comparing and synthesizing findings from previous studies. The results indicate that students’ digital interactions have a two-sided dynamic. Purposeful and well-managed digital use can support academic activities, expand social relationships, and provide social support. In contrast, problematic use may be associated with FoMO, social media fatigue, social media addiction, sleep disturbances, exposure to negative information, and experiences of cyberbullying that may undermine psychological well-being. These dynamics are not determined solely by the duration of digital media use but also by the purpose of use, quality of interaction, ability to regulate digital use, and students’ psychological conditions. Therefore, strengthening digital literacy, self-control, resilience, and the ability to develop healthy patterns of digital interaction is important for supporting students’ psychological well-being.