Abstract: This study examined the role of digital literacy in early childhood learning environments. The objectives were to: (1) assess the impact of digital tools on children's learning outcomes, (2) evaluate the effectiveness of digital literacy programs in developing critical thinking skills, and (3) determine the role of digital literacy in preparing children for future educational demands. A survey design was utilized to gather detailed information from educators and parents about their experiences and the outcomes of digital literacy initiatives. A sample size of 130 preschool educators and parents was selected using purposive sampling to ensure participants had relevant experience with digital literacy programs. The case study was centered on preschools in Rivers State, Nigeria. Findings indicated that digital literacy significantly enhanced children's learning outcomes, particularly in critical thinking and problem-solving. Educators and parents noted that children were more engaged and showed greater interest in learning activities involving digital tools. It was recommended that early childhood education programs integrate digital literacy into their curricula to equip children with essential skills for the digital age, and that ongoing professional development for educators include training in digital literacy strategies.