Accelerated digitalisation of financial services and products has significantly influenced how young individuals access financial information, investment products and financial services. With the emergence of DFL as a construct, it is imperative to equip youths with DFL for healthy investment behaviour and financial decision-making. This study assesses the impact of DFL on Investment Behaviour and Financial Decision Making and further explores the mediating role of Investment Behaviour. A quantitative, cross-sectional, and explanatory research design was utilised. Data were collected using a structured online questionnaire from 250 investors between the ages of 18–35 years, using purposive sampling and snowball sampling technique. Data were analysed using descriptive statistics, reliability and validity tests, correlation analysis, and Partial Least Squares Structural Equation Modelling (PLS-SEM). The study results reveal that DFL positively and significantly affects Investment Behaviour (β = 0.674, p < 0.001) and Financial Decision Making (β = 0.318, p < 0.001). Investment Behaviour positively and significantly influences Financial Decision Making (β = 0.593, p < 0.001). The models explained 45.4% variance in Investment Behaviour and 68.7% variance in Financial Decision Making. Further mediation analysis shows that Investment Behaviour has a significant mediating effect on the relationship between DFL and Financial Decision Making (indirect effect β = 0.400, p < 0.001). This study contributes to theory by reinforcing the need to enhance digital financial knowledge, skills, risk awareness, security awareness and evaluation of online information of young investors. Practical implications for banks, FinTech platforms, university students and policymakers can be drawn from this study....