This study explores EFL students and instructors' perceptions on digital literacy to understand their perceptions towards using digital tools in English language classrooms. The participants (N=136, 46 females and 90 males) are EFL students enrolled at a state university located in southeast part of Turkey, who are studying in different departments ranging from engineering, aviation management to architecture and medicine in addition to EFL instructors (N=27, 20 females and 7 males) working in the same university. The study was designed as qualitative in nature in order to develop a deeper interpretation of participants' understanding of the concept of Digital Literacy (DL). An open-ended questionnaire with background information section was used as the data collection tool for both groups separately. The data collected were analysed by conducting content analysis. Findings indicate that EFL students and instructors' understanding of DL was centered on different concepts. EFL students considered DL skills as a tool to reach and analyse information on the net whereas these skills serve as a means of social interaction and communication for EFL instructors. The Implications of the findings are also discussed for EFL students and instructors in Turkey with regard to English language teaching field.