This study examines the challenges and opportunities in the digital transformation of Micro, Small, and Medium Enterprises (MSMEs) and effective technology management strategies. MSMEs face significant challenges such as limited financial and human resources, inadequate digital infrastructure, and a lack of knowledge about technology. However, digital transformation offers substantial opportunities, including improved operational efficiency, broader market access, and better data analysis for decision-making. The research employs a qualitative approach with a literature review to identify and analyze these challenges and opportunities. Key findings include the importance of developing a technology strategic plan aligned with business goals, selecting and integrating appropriate systems, and training employees. Proper implementation of digital technology can help MSMEs automate processes, reduce costs, and enhance productivity and innovation. The study concludes that digital transformation is not just about adopting technology but also about changing work processes and mindsets to create sustainable value. With adequate support and well-planned strategies, MSMEs can overcome challenges and leverage digital opportunities for growth and sustainability.This study examines the challenges and opportunities in the digital transformation of Micro, Small, and Medium Enterprises (MSMEs) and effective technology management strategies. MSMEs face significant challenges such as limited financial and human resources, inadequate digital infrastructure, and a lack of knowledge about technology. However, digital transformation offers substantial opportunities, including improved operational efficiency, broader market access, and better data analysis for decision-making. The research employs a qualitative approach with a literature review to identify and analyze these challenges and opportunities. Key findings include the importance of developing a technology strategic plan aligned with business goals, selecting and integrating appropriate systems, and training employees. Proper implementation of digital technology can help MSMEs automate processes, reduce costs, and enhance productivity and innovation. The study concludes that digital transformation is not just about adopting technology but also about changing work processes and mindsets to create sustainable value. With adequate support and well-planned strategies, MSMEs can overcome challenges and leverage digital opportunities for growth and sustainability.