The integration of educational innovation and digital transformation has become increasingly crucial in reshaping educational landscapes globally. In the context of Ukraine, where the education system faces numerous challenges, understanding the interconnection between these concepts is paramount for driving meaningful change and fostering socio-economic development. This research aims to explore the interconnection between educational innovation and digital transformation, specifically focusing on its implications and prospects for Ukraine's education sector. The research employs a comprehensive literature review approach, drawing upon scholarly works and empirical studies related to educational innovation and digital transformation. Comparative analyses and impact assessment studies are utilized to provide a nuanced understanding of the complex dynamics at play. The study reveals the critical significance of embracing educational innovation and digital transformation in Ukraine. It highlights the potential of digital technologies to enhance teaching and learning practices, improve educational outcomes, and foster socio-economic development. Furthermore, the results identify key factors and opportunities associated with the integration of digital initiatives, offering insights into effective strategies and policy interventions. In conclusion, educational innovation and digital transformation represent more than fleeting trends; they are essential routes toward cultivating a robust, flexible, and globally competitive education system in Ukraine. Through embracing innovation, nurturing digital literacy, and placing a premium on educational reform, Ukraine can assert its leadership in educational excellence and secure the prosperity of forthcoming generations. The findings of this research provide valuable guidance for policymakers, educators, and stakeholders in Ukraine's education sector. By understanding the implications of educational innovation and digital transformation, stakeholders can enact evidence-based reforms, implement effective interventions, and propel Ukraine towards a more prosperous and knowledge-driven future.