<![CDATA[The acceleration of the digital economy requires MSMEs to adapt in order to maintain their competitiveness. However, MSME digitalization at the regional level still faces limitations in digital literacy, infrastructure, policy support, and sustainable mentoring. This study aims to analyze the role of digital literacy and policy support in improving the digital business performance of MSMEs in Bone Regency. A qualitative approach with a case study design was employed. Data were collected through observation, documentation, and in-depth interviews with 12 MSME actors in the Watampone area and three supporting informants representing local government, business mentors, and MSME service partners. Data were analyzed using the Miles and Huberman interactive model. The findings indicate that MSME digitalization remains at a basic adoption stage. Social media, QRIS, and e-wallets are mainly used for promotion, customer communication, and transactions, but have not been optimally utilized for data analysis, customer management, or business decision-making. Policy support is available but remains constrained by budget, program coverage, and regulatory limitations. The study implies that improved digital business performance requires integrated digital literacy, continuous mentoring, infrastructure, business legality, and access to financing.]]>
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