This study explores how digital storytelling influences the cultural identity development of secondary culturally and linguistically diverse (CLD) students from Bhutanese-Nepali backgrounds. Utilizing the theoretical framework of multiliteracies, cultural identity and sociocultural theory in Second Language Development, this research investigates the benefits and challenges of digital storytelling. Data were collected through semi-structured interviews, digital story artifacts, and observations during a seven-week after-school program. The findings reveal that digital storytelling allows CLD students to connect deeply with their cultural identities, express their experiences, and advocate for themselves and the broader immigrant community. Students integrated linguistic, visual, and audio elements to create rich, multimodal narratives, enhancing their language skills in both heritage languages and English. However, they also faced challenges such as technical difficulties and language barriers, underscoring the need for additional support.