Digital transformation requires Islamic Religious Education (PAI) not only to develop students’ technical skills in using digital technology but also to foster critical thinking and digital ethics grounded in Islamic values. This study aims to analyze the current state of students’ digital literacy, examine K.H. Ahmad Dahlan’s concept of tajdid as a philosophical foundation, and formulate a tajdid-based digital literacy transformation framework for PAI learning. This study employs a qualitative approach using a library research method. Data were collected from relevant journal articles, books, and scholarly publications and analyzed using content analysis through the stages of data reduction, synthesis, interpretation, and conclusion drawing. The findings indicate that students’ digital literacy remains predominantly oriented toward operational skills and therefore requires further development in information evaluation, critical thinking, and digital ethics. Conceptually, this study produces a tajdid-based digital literacy transformation framework consisting of three pillars: technological transformation, pedagogical transformation, and Islamic character transformation. This framework is further articulated into four stages of competency development: digital access (access to digital learning resources), digital competence (mastery and effective use of technology), critical digital literacy (critical analysis and information verification through the Islamic principle of tabayyun), and Islamic digital ethics (the internalization of the values of amanah (trustworthiness), ṣidq (truthfulness), responsibility, and respect for the rights of others). The three pillars and four stages constitute a conceptual synthesis derived from the reviewed literature rather than a model whose effectiveness has been empirically tested. Thus, this framework offers a conceptual foundation for developing digital literacy in PAI learning by integrating technological competence, critical thinking, and digital character formation grounded in Islamic values.