Agile development has become a key approach in digital transformations due to its flexibility and adaptability. This paper explores the theoretical foundations and practical applications of Agile in digital transformations. Theoretical foundations of Agile stem from iterative and incremental methodologies that prioritize customer collaboration, adaptive planning, and continuous improvement. Agile principles, as outlined in the Agile Manifesto, emphasize individuals and interactions over processes and tools, working software over comprehensive documentation, customer collaboration over contract negotiation, and responding to change over following a plan. These principles are supported by frameworks like Scrum, Kanban, and Extreme Programming (XP), which provide specific practices for implementing Agile in digital transformations. Practically, Agile enables organizations to respond quickly to market demands and customer needs, allowing for faster delivery of value. Agile practices such as daily stand-ups, sprint planning, and retrospectives promote collaboration and continuous improvement. Agile also enhances project transparency and stakeholder engagement through regular demonstrations and feedback loops, ensuring the final product meets customer expectations. The paper highlights the importance of Agile in digital transformations, emphasizing its ability to enable organizations to adapt to change, deliver value, and foster collaboration. Theoretical foundations of Agile include the Agile Manifesto, which values individuals and interactions, working software, customer collaboration, and responding to change. Agile is supported by frameworks like Scrum, Kanban, and XP, which emphasize iterative and incremental development, customer collaboration, adaptive planning, and continuous improvement. These concepts form the basis of Agile development and guide how Agile teams work to deliver high-quality software efficiently. Practical applications of Agile in digital transformations include the adoption of Agile frameworks and methodologies at the organizational level, the use of Agile tools and technologies, and the integration of Agile into organizational culture. Agile is applied in various aspects of project management, software development, and organizational practices. Case studies of successful Agile implementations, such as Spotify, ING Bank, Amazon, Microsoft, IBM, and Airbnb, demonstrate the effectiveness of Agile in driving digital transformations. Challenges in conceptualizing Agile in digital transformations include organizational culture, change management, and scalability. Organizations must foster a culture of agility, implement effective change management strategies, and adopt scalable Agile practices. The future of Agile development is likely to be shaped by emerging technologies such as AI, ML, IoT, and blockchain, as well as the evolution of Agile frameworks. The paper concludes that Agile development is essential for digital transformations, emphasizing the need for organizations to embrace Agile principles and practices to drive innovation and deliver value to customers.Agile development has become a key approach in digital transformations due to its flexibility and adaptability. This paper explores the theoretical foundations and practical applications of Agile in digital transformations. Theoretical foundations of Agile stem from iterative and incremental methodologies that prioritize customer collaboration, adaptive planning, and continuous improvement. Agile principles, as outlined in the Agile Manifesto, emphasize individuals and interactions over processes and tools, working software over comprehensive documentation, customer collaboration over contract negotiation, and responding to change over following a plan. These principles are supported by frameworks like Scrum, Kanban, and Extreme Programming (XP), which provide specific practices for implementing Agile in digital transformations. Practically, Agile enables organizations to respond quickly to market demands and customer needs, allowing for faster delivery of value. Agile practices such as daily stand-ups, sprint planning, and retrospectives promote collaboration and continuous improvement. Agile also enhances project transparency and stakeholder engagement through regular demonstrations and feedback loops, ensuring the final product meets customer expectations. The paper highlights the importance of Agile in digital transformations, emphasizing its ability to enable organizations to adapt to change, deliver value, and foster collaboration. Theoretical foundations of Agile include the Agile Manifesto, which values individuals and interactions, working software, customer collaboration, and responding to change. Agile is supported by frameworks like Scrum, Kanban, and XP, which emphasize iterative and incremental development, customer collaboration, adaptive planning, and continuous improvement. These concepts form the basis of Agile development and guide how Agile teams work to deliver high-quality software efficiently. Practical applications of Agile in digital transformations include the adoption of Agile frameworks and methodologies at the organizational level, the use of Agile tools and technologies, and the integration of Agile into organizational culture. Agile is applied in various aspects of project management, software development, and organizational practices. Case studies of successful Agile implementations, such as Spotify, ING Bank, Amazon, Microsoft, IBM, and Airbnb, demonstrate the effectiveness of Agile in driving digital transformations. Challenges in conceptualizing Agile in digital transformations include organizational culture, change management, and scalability. Organizations must foster a culture of agility, implement effective change management strategies, and adopt scalable Agile practices. The future of Agile development is likely to be shaped by emerging technologies such as AI, ML, IoT, and blockchain, as well as the evolution of Agile frameworks. The paper concludes that Agile development is essential for digital transformations, emphasizing the need for organizations to embrace Agile principles and practices to drive innovation and deliver value to customers.