The integration of digital technology into education requires valid and reliable tools to assess digital literacy, particularly at the primary school level where foundational skills are formed. This study aimed to develop and validate a digital literacy assessment instrument tailored for Indonesian primary school teachers and students. Using a Research and Development (RD) approach based on the Borg and Gall model, the instrument was designed to measure four core dimensions: Technical Skills, Digital Information Evaluation, Digital Ethics, and Digital Collaboration. A total of 427 participants—213 teachers and 214 students—from six provinces across Indonesia participated in the validation process. Content validity was assessed using Aiken’s V, while construct validity and reliability were evaluated through Confirmatory Factor Analysis (CFA) and composite reliability measures. The findings demonstrated strong psychometric properties. Aiken’s V values were all ≥ 0.85, indicating high content validity. CFA results showed satisfactory factor loadings (≥ 0.60) and acceptable model fit indices (CFI ≥ 0.90; RMSEA ≤ 0.08). All four dimensions achieved composite reliability scores exceeding 0.70. The instrument proved to be a valid and reliable measure of digital literacy among primary school stakeholders. Although the study was limited to a specific sample, the results suggest potential for broader implementation. The tool offers practical value for educators and policymakers seeking to evaluate and enhance digital literacy, contributing to more inclusive, future-ready educational practices.