This study examines the influence of entrepreneurship education and digital literacy on TVET students’ entrepreneurial inclination and readiness for digital entrepreneurship. Grounded in the Theory of Planned Behavior (TPB), the study employed a quantitative cross-sectional research design involving 170 final-year students from Malaysian polytechnics and community colleges. Data were analysed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that digital literacy exerts a significant and consistent influence on both entrepreneurial inclination and readiness, whereas entrepreneurship education significantly influences readiness but does not demonstrate a significant effect on entrepreneurial inclination. The results reveal an education-intention gap, suggesting that current entrepreneurship education is more effective in developing entrepreneurial capabilities than in strengthening entrepreneurial intention within digital contexts. The study makes a theoretical contribution by demonstrating the dual role of digital literacy as both a cognitive and capability-oriented driver. Practically, the findings highlight the importance of digitally embedded, experiential, and industry- relevant entrepreneurship education approaches to better prepare TVET students for the digital economy.