Digital transformation in education requires teachers and students to possess digital literacy as a fundamental competence in responding to changes in learning environments. Digital literacy is not limited to the ability to operate technological devices but also includes the ability to access, evaluate, manage, and utilize digital information critically, ethically, and responsibly. This article aims to analyze the role of teachers’ and students’ digital literacy in supporting learning quality improvement in the digital era. This study employed a library research method by examining scientific literature published over the last five years related to digital literacy, teachers’ digital competence, and technology-based learning. The findings indicate that teachers’ digital competence plays an essential role in integrating technology pedagogically, while students’ digital literacy supports independent learning, critical thinking skills, and productive technology utilization. However, the implementation of digital literacy still faces several challenges, including competency gaps, human resource readiness, and the need to strengthen digital culture within educational environments. Therefore, sustainable strategies are required through teacher competency development, digital literacy integration into learning processes, and systematic educational policy support.
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