The aim of the literature review study is to obtain information regarding the condition of digital competence possessed by students and teachers in the era of the industrial revolution 4.0. The determining factor for the industrial revolution 4.0 is digital competence. In this era, the quality of global education has not been able to meet the needs of digital education. The education system shapes students' thinking to compete with each other. Digital competency exists as a form of digital technology development in society. Digital technology grows and develops along with the times. In this research, researchers used the library observation method. The way to obtain data using this method is by conducting library observations on previous articles and research. The articles or research used as data sources come from journals published in the last 10 years. Based on the research results, it was found that teachers and students have low digital competence so that their mastery of digital technology is also low. It was also found that the level of awareness of teachers and students regarding digital technology awareness was very low, digital literacy and digital technology skills were low. Based on the results of this literature, it is necessary to follow up on how students and teachers have digital competence for the future in accordance with needs.