The Covid-19 pandemic has shifted the way of social interaction includes the world of education. This phenomenon forces the learning system to adapt to educational technology (EdTech). This article aims to explain, analyze, and examine the digital literacy development in learning Arabic during the new normal era in MTsN 8 Tulungagung with the assumption that MTsN 8 Tulungagung has been able to implement a learning system that makes teachers and students easier to carry out distance learning. This research uses a qualitative approach with a phenomenological analysis method. The results show that the concept of digital literacy development includes organizational dimensions, the human resource dimension, the financial dimension, and infrastructure dimensions. Supporting factors are the availability of internet facilities and language laboratories, the availability of LCDs in every class, and teachers who can use PowerPoint media. The inhibiting factors are teachers and students that do not master technology and limited infrastructure to support the school innovation.