Literacy is the learning to read and write proficiently while digital literacy is the ability to use different digital tools for learning in young children (Kazakoff, 2012; Green et al, 2006). Digital storytelling is more effective to children’s learning rather than the traditional way as it can support the current trends in teaching and learning. Through this rationale, it can be seen that the child’s writing skill and comprehension improved as she had fun through the process of creating the digital story. This rationale also discussed the implication of Information and Communication Technologies (ICT) in the early years setting, the planning and the usage of digital story in the early years setting with the supports of policies, theories and curriculums that can develop children’s literacy, communication and language skills.ICT can be defined as anything that enable us to receive information, to interact with each other or to bring impact on the environment using electronic or digital device (Bolstad, 2004). There are many devices and equipment that can be use in an early years setting to encourage the usage of ICT such as cameras, computers, programmable toys and many more. ICT had brought an impact to the children learning and development, remarkably in their literacy development as children nowadays are living in a challenging and advance environment (Roney, 2008). Children should be provided with opportunities, for instance, through creating digital stories to develop ‘technological literacy’ to ensure their activeness and competence in their environment (Shah and Godiyal, 2000). Significantly in the Early Years Foundation Stage (EYFS), involving technology in children’s learning and development can support the progression of the children and also achieving the learning goals (DfE, 2012a).