The digital sukuk is an innovative financial tool that combines Islamic finance principles with advanced financial technology, marking a notable progression in the field of Islamic finance. This chapter will delve deeply into digital sukuk, starting with an examination of conventional sukuk structures and their inherent constraints. The concept of digital sukuk is then explored, explaining how financial digitalization and smart contracts transform the issuing, trading, and administration of Islamic sukuk, or bonds. In addition, this chapter will explore the advantages of digital sukuk and the significance of adhering to Shariah principles and regulatory standards. Furthermore, this chapter examines successful digital sukuk issuances, such as the government-issued Sukuk Prihatin and the Blossom Finance SmartSukuk. Lastly, this chapter will underscore the significance of overcoming challenges such as technological accessibility and regulatory compliance in order to fully capitalize on the advantages of digital sukuk.