The rapid advancements in technology have profoundly transformed how students engage and approach learning, leading to a digital revolution in education. This shift is marked by the integration of new technologies and the digitization of educational processes, necessitating enhanced digital literacy skills among students. This chapter explores students' digital literacy through a review of 20 scholarly articles published from 2020 onwards in databases like Google Scholar, ProQuest, ScienceDirect, IEEE Xplore, Emerald, and SpringerLink. It examines various facets of digital literacy, considering the evolving definition in the new educational environment. The study investigates factors influencing students' digital literacy and explores its relationship with 21st century skills, academic performance, and employability. The study offers recommendations for students, educators, and policymakers to improve digital literacy initiatives. It also critically evaluates the limitations of existing research and highlights implications for future research and educational practices.