Abstract The purpose of this study is to investigate the relationship between Technology Acceptance Model (TAM) and digital literacy among first-year students in a private institution of higher learning in Malaysia. Two main dimensions from TAM, i.e., Perceived Ease of Use (PEOU) and Perceived Usefulness (PU) were investigated as independent variables. Meanwhile, digital literacy was investigated as the dependent variable. Other factors such as gender, age, location, home internet connection and tenure of being computer user were also being investigated in this study. A total of 127 questionnaires were distributed among first-year students. However, only 123 responses were useful. The data gathered was tabulated using SPSS version 20. Four types of analyses, i.e., Descriptive Analysis, T-Test, ANOVA and Spearman's Correlation were administrated. The results showed that high level of digital literacy among the first-year students. The T-Test showed significant difference in the level of digital literacy in accordance home internet connection. However, no significant difference in the level of digital literacy in accordance with gender and location. ANOVA Analysis showed no significant difference in the level of digital literacy in accordance with age and tenure of being computer user. Spearman's Correlation revealed that there is a significant relationship between PEOU and digital literacy. Similarly, significant relationship found between PU and digital literacy and home internet connection and digital literacy. In addition, PEOU was identified as the most dominant factor influencing digital literacy.