Digital transformation in primary education requires teachers not only to operate devices but also to have the digital literacy to select information, evaluate sources, design learning experiences, communicate and collaborate, and use technology safely and ethically. This article analyses the relationship between teachers' digital literacy and instructional innovation, with SDN 149 Amessangeng as an illustrative context for school development. The study employed a systematic literature review (SLR) guided by the transparency principles of PRISMA 2020. The review focused on publications from 2021 to 2025 addressing teachers' digital competence or literacy, technology integration, pedagogical innovation, instructional design, and digital transformation in education. The synthesised sources included peer-reviewed studies and reports from international organisations relevant to primary education and teacher professional development. The findings indicate a positive and mutually reinforcing relationship between teachers' digital literacy and instructional innovation. Teachers with stronger digital literacy tend to have greater capacity to select technologies aligned with learning objectives, diversify media and activities, implement digitally supported formative assessment, provide opportunities for personalisation, and develop collaborative, learner-centred instruction. However, digital literacy does not automatically produce innovation without supportive school leadership, adequate infrastructure, a collaborative culture, time for experimentation, and continuous professional development. For SDN 149 Amessangeng, the findings imply the need for pedagogically oriented digital literacy programs rather than application-centred training. The school is encouraged to develop teacher learning communities, shared repositories of instructional resources, needs-based mentoring, and evaluation of innovation based on student engagement and learning quality. The review confirms that teachers' digital literacy is an important foundation for relevant, inclusive, safe, and sustainable instructional innovation in primary schools
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