The emergence of digital technology in the society 5.0 era proses complex consequences for Generation Alpha, specifically at the elementary school level, where unregulated usage of devices can lead to moral crises, including apathy, individualism, and deteriorated social courtesy. In light of this situation, this study seeks to analyze the relationship between the use of digital technology and character development in elementary school children and formulate effective digital literacy strategies. The methodology adopted in this study is the qualitative research approach using library research with the technique of content analysis of various relevant scientific articles. Based on the results of the study, it can be seen that the use of digital technology plays a dual role. First, technology provides positive impacts, such as increasing classroom interactivity, promoting independent learning (critical, creative, and innovative), and developing communication between teachers and parents via digital platforms. Second, technology generates negative impacts if used unsupervised, including decreased ability for face-to-face social interaction, cyberbullying, and social media addiction. Hence, the need for the acceleration of digital literacy in elementary school must not focus on limiting thr devices; rather, it must center on managing screen time, educational content curation, and synergetic collaboration among teachers, student, and parents in order to produce an upright digital generation in line with Pancasila values.
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