This study presents a literature review focused on the psychological impact of digitalization on faculty motivation in higher education. As digital technologies increasingly reshape academic environments, understanding their effects on educators’ motivation has become essential. The aim of this research is to synthesize existing studies that explore how digitalization influences psychological factors such as motivation, stress, engagement, and professional well-being. The central research question asks how digital transformation affects faculty motivation and what contextual factors shape this relationship. The review identifies several interrelated themes, including digital competence, technostress, institutional support, pedagogical autonomy, and work engagement. The findings reveal that digitalization can both enhance and hinder motivation depending on how it is implemented and supported. This review contributes to a more nuanced understanding of faculty experiences in digitally evolving institutions and underscores the importance of aligning digital strategies with the psychological needs of educators.