Abstract. This paper explores the digital transformation of higher education institutions in Uzbekistan, focusing on the adoption of digital tools, institutional readiness, and the challenges faced by faculty and students. The study employs a mixed-methods research design, incorporating both quantitative and qualitative data from surveys, interviews, and document analysis. The findings highlight significant progress in digital adoption, with faculty members using online platforms such as Moodle and Google Classroom. However, gaps in digital literacy, uneven infrastructure distribution, and challenges related to access for students in rural areas remain key issues. This paper provides recommendations for addressing these barriers to ensure equitable and sustainable digital transformation in Uzbekistan’s higher education sector.