Amid present day’s fast technological development, the incorporation of information technology in teaching and learning can no longer be overlooked. However, the results found that despite the improved digital literacy skills and self-efficacy about ICT among the students of Kot Addu which was the DBGb/rDBG rural and semi-urban students there was have lack of research work that investigates the ways to strengthened the students’ learning outcomes through digital literacy and ICT self-efficacy. The effects of digital literacy and ICT self-efficacy on academic and functional skills of students of secondary Islamic schools in District Kot Addu, South Pakistan. In this quantitative study, the author assesses the participants’ levels of digital literacy, ICT self-efficacy, and functional skills using structured questionnaires on 300 students enrolled in 5 different secondary Islamic schools in the region. The quantitative data was collected using an Administration Questionnaire. The collected data was processed by calculating the percentage distribution of the demographics of the respondents. Cronbach Alpha score and the experts’ opinion was then utilized to establish the validity and reliability of the questionnaire during the pilot test conducted in Kot Addu district. Descriptive and inferential techniques were applied on the data collected from the participants to examine the correlation between the independent measures; digital literacy and ICT self-efficacy to the dependent measures; the academic performance and the functional skills. The findings also show a similar significant positive relationship between the following variables: digital literacy and students’ functional skills, ICT self-efficacy, and academic performance.