This paper explores the numerous definitions of digital literacy, discusses its relationship to information literacy, and describes applications of digital literacy instruction in institutions of higher education. It also offers opportunities for academic librarians, and especially those in junior and community colleges, to enhance students' digital literacy skills through novel educational techniques. For example, librarians could develop tools to support students' interaction in course management systems and virtual worlds, assist faculty in the creation of course curriculum, as well as moderate online book discussions. Promoting the development of a variety of literacies among students enables librarians to demonstrate their flexibility as well as their role in contributing to individuals' success in academia and beyond. (Contains 3 figures and 3 tables.)