<![CDATA[Digital transformation in higher education demands absolute readiness from the entire academic community, particularly lecturers and students. This study aims to analyze the critical role of digital literacy for both lecturers and students in addressing and overcoming challenges in the digital transformation era using a systematic literature review method evaluating 10 core selected studies. The results demonstrate that digital literacy for lecturers spans far beyond basic technical operational skills, heavily encompassing digital pedagogical proficiency to design adaptive learning environments. For students, digital literacy plays a vital role in fostering critical thinking, independent learning abilities, and virtual collaboration skills. The synergy of digital competencies between lecturers and students constitutes the core driver for successful educational technology implementation, modern curriculum alignment, and mitigation of disruptive technological impacts within university environments. The conclusion reinforces that holistic digital literacy serves as the primary foundation for transforming higher education institutions into sustainable, future-ready learning ecosystems]]>
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