This study aims to empirically examine the partial and simultaneous effects of motivation and digital literacy on the entrepreneurial interest of alumni from the State Islamic Institute (IAIN) Parepare. Employing a quantitative method with a causal explanatory approach, research data were systematically gathered via structured questionnaires from a purposive sample of 80 alumni. The collected data were analyzed using multiple linear regression, partial t-tests, simultaneous F-tests, Pearson correlation, and a one-sample t-test. The empirical results demonstrate that motivation and digital literacy simultaneously exert a positive and highly significant effect on entrepreneurial interest, explaining 78.1% of the total variance (R Square = 0.781). Partially, motivation which integrates the psychological need for achievement with the theological foundation of the Islamic work ethic significantly drives entrepreneurial intentions (sig. 0.000; coefficient 0.388). Similarly, digital literacy acts as a crucial pre-business catalyst, significantly boosting entrepreneurial interest (sig. 0.001; coefficient 0.397) by enabling alumni to validate market opportunities and lower perceived risks of business failure. However, the one-sample t-test critically reveals that the actual mean scores for both motivation and digital literacy among alumni are statistically and significantly below the expected standard target value of 70 (mean differences of -13.263 and -25.338 respectively; sig. 0.000). This empirical gap directly explains the currently low absorption rate of graduates into the self-employed sector (only 8% according to tracer study data). Based on these findings, it is highly recommended that higher education institutions systematically intervene by integrating practical digital entrepreneurship competencies into the core academic curriculum. Furthermore, establishing dedicated post-campus business incubation programs is essential to proactively elevate the foundational motivation and technical capacities of graduates, effectively transforming their latent entrepreneurial intentions into successful, sustainable actualized business ventures