The use of English as a medium of instruction has become prevalent worldwide. The current world has witnessed the proliferation of technology in various fields, including education. This systematic literature review explored English language teachers' perceptions of using digital tools in teaching and learning, as well as the challenges they face in this context. Following the PRISMA framework, 24 out of 476 articles were screened from Scopus and Web of Science (WoS). The review discovered that the English language teachers, in general, displayed positive perceptions regarding the use of digital tools in teaching. Computer readiness, beliefs about technology, training and support, prior experience, attitudes towards innovation as well as the perceived benefits and challenges shape teachers' overall perception. On the other hand, past studies on the challenges identified encompass a lack of training and knowledge, technical issues and limited access, institutional support and policies, time constraints and preparation, student readiness and engagement, digital competence and pedagogical skills, resource and guideline limitations and external interference. In view of the transformative role that technology plays in language learning outcomes, the effectiveness of varied digital tools in honing specific language skills or content is regarded as an area worth exploring, along with comparative studies on perceptions towards integrating digital tools among different groups of students and teachers. It is hoped that the findings of this study could provide valuable insights into the use of digital tools and their impact in the context of English teaching and learning, benefiting teachers and education stakeholders alike.