This study investigates the influence of technological literacy in artificial intelligence (AI), augmented/virtual reality (AR/VR), and mobile applications on English as a Foreign Language (EFL) students' engagement and motivation in technology-enhanced classrooms. A total of 357 Chinese EFL students participated in a survey-based quantitative study aimed at examining how immersive learning tools support personalised, interactive, and cognitively engaging experiences. Structural Equation Modelling (SEM) was employed to analyse the relationships among students' literacy in emerging technologies, their academic engagement, and motivational levels. The results revealed that AI and AR/VR literacy significantly predicted both engagement and motivation, with higher levels of technological literacy associated with increased interaction, deeper immersion, and more meaningful learning experiences. Additionally, SEM findings showed that literacy in these tools contributed substantially to the development of students' cognitive and critical thinking skills. These insights underscore the importance of integrating AI, AR/VR, and mobile tools into EFL instruction and position technological literacy as a key driver of pedagogical innovation and learner success in digital language learning environments.