Abstract In this article, we introduce Orlicz spaces on $ \mathbb Z^n \times \mathbb T^n $ and Orlicz modulation spaces on $\mathbb Z^n$ , and study inclusion relations, convolution relations, and duality of these spaces. We show that the Orlicz modulation space $M^{\Phi }(\mathbb Z^n)$ is close to the modulation space $M^{2}(\mathbb Z^n)$ for some particular Young function $\Phi $ . Then, we study localization operators on $\mathbb Z^n$ . In particular, using appropriate classes for symbols, we prove that these operators are bounded on Orlicz modulation spaces on $\mathbb Z^n$ , compact and in the Schatten–von Neumann classes.