Purpose: This study analyzes the cultural adaptation process of the local community in Canggu toward the presence of digital nomads based on Young Yun Kim’s Cultural Adaptation Theory. Existing studies on digital nomads have largely emphasized economic transformation, lifestyle changes, and tourism development, while the cultural adaptation experiences of local communities remain underexplored.Research Methodology: A qualitative approach was applied through observation, in-depth interviews, and documentation. Informants were selected using snowball sampling, and data were analyzed through data reduction, data display, and conclusion drawing.Results: The findings identify three stages of cultural adaptation. In the stress phase, the community experienced language barriers, cultural differences, environmental changes, traffic congestion, and increased living costs. In the adaptation phase, residents improved English skills, developed cross-cultural understanding, and adjusted services and economic activities to digital nomads’ needs. In the growth phase, the community gained economic opportunities, enhanced intercultural communication skills, and strengthened confidence in Balinese cultural identity.Conclusions: Digital nomad presence creates a dynamic adaptation process that generates economic opportunities while supporting the preservation of local cultural identity.Limitations: This study focuses only on the local community perspective in Canggu and does not include digital nomads’ perspectives or broader historical-cultural analysis.Contributions: This study extends cultural adaptation literature by applying Young Yun Kim’s framework to the emerging context of digital nomad tourism. It provides a local community perspective on negotiating cultural change and offers insights for sustainable destination management that balances tourism growth and cultural preservation.