In today’s increasingly digital society, the ability to navigate, evaluate, and effectively use digital information known as digital literacy had become an essential skill for students, including those at the elementary school level. However, fostering digital literacy awareness among elementary school students presented unique challenges, particularly due to developmental, pedagogical, and contextual factors. This study aimed to explore the state of digital literacy among elementary students and examine various strategies for building awareness and foundational skills in this area. This review synthesized findings from recent empirical and theoretical studies, focusing on the integration of digital tools, the role of teachers, curriculum design, and parental involvement. It highlighted the importance of age-appropriate learning approaches that combined guided exploration with the development of critical thinking. Furthermore, it emphasized the need for a comprehensive approach to digital literacy in schools, including consistent education on digital ethics and safety across all subjects. The main findings showed that early and structured exposure to digital media, when guided by competent educators and supported by inclusive policies, significantly enhanced students’ digital literacy awareness. The literature also indicated that teacher professional development and collaboration with families were crucial to sustaining effective practices. In conclusion, fostering digital literacy awareness in elementary education required a multi-dimensional approach involving teachers, parents, curriculum innovation, stakeholder engagement, and policy alignment. Future research needed to examine context-specific interventions and long-term impacts to formulate sustainable strategies.