Under the dynamic influence of near-surface plasma, intricate dynamics of lunar dust have been observed during the Surveyors and Apollo missions in the form of Lunar horizontal glow. These dynamics are primarily driven by electrostatic forces generated by the continual bombardment of solar wind and highly energetic UV photons on the lunar surface and dust particles. This paper revisits the phenomenon of dust charging within the lunar photoelectron sheath and subsequent dynamics. The investigation has been carried out using a comprehensive model of the lunar photoelectron sheath characterized by observed solar spectra, latitude-dependent Fermionic photoelectrons, non-Maxwellian solar wind electrons, and cold ions. A test dust particle is introduced into the sheath, and equilibrium charge and static levitation conditions are derived. The result of dynamical evolution suggests the existence of a narrow parametric regime corresponding to the periodic hopping trajectory of the dust particle over the lunar surface. In other cases, the dust particles are found to re-impact the surface after a single ballistic hop. We further identify that the discrete charging of the dust could be crucial in determining the dust dynamics, particularly in the tenuous plasmas. The analysis of the discrete dust charging model reveals significant discrepancies with the continuous dust charging model and suggests a lower likelihood of static dust levitation in the lunar environment. The present study is important for unraveling the fundamental processes governing surface evolution on the Moon and other airless bodies throughout the Solar System.