Digital stress poses one of the most significant challenges for organizations because of the emerging digital transformation. Numerous reports have discussed the impact of digital work on employees' perceived physical and mental health. Continuous exposure to digital information flow, multitasking, and constant connectivity may lead to cognitive overload and mental fatigue, affecting attention, memory, concentration, and even one's capacity for innovation. This study aimed to investigate the relationship between perceived digital stress, work engagement, and innovation capacity. A large survey was conducted among companies and public organizations in Finland, with 121 respondents. Data were analyzed using SPSS-28, employing Pearson correlations and descriptive methods. The study revealed an indirect association between digital stress and innovation capacity, with digital load and work engagement acting as mediators. However, a moderate correlation was observed between work engagement and innovation capacity. In summary, it can be suggested that moderate digital workload combined with good digital competence may have a positive association with eustress, work engagement, and innovation capacity.