The term ‘literacy' has been traditionally associated with the ability to use the skills of reading and writing. Nowadays and with the progress of technology, this term has been broadened to refer to other skills and abilities. One of these is digital literacy, which is no longer restricted to the ability to handle computers. It encompasses several skills that teachers and students should master so that effective learning/teaching can take place. Not only does the importance of digital literacy lie in providing and making information more accessible, but it does mainly aim at respecting the tendencies of young learners. A student/ teacher who has not strengthened his/her digital competence will inevitably struggle to succeed in an increasingly digital world. Hence, it should be part and parcel of the curriculum since it contributes to lifelong learning and is a highly required competence for employment. This article is a review of the literature on the beneficial impact of digital literacy and its associated learning outcomes in higher education. It addresses the following questions: What does digital literacy, a powerful technological tool, add to the teaching-learning process in higher education? And what are the obstacles that are likely to hinder the implementation of different digital-related skills?