For many families, young children’s engagement with screen-based technology is an ongoing concern in terms of physical, social and cognitive development. They are uneasy with the difficulty children have disengaging from screens and concerned that this behavior is obsessive or a sign of addiction. However, technology is recognized as having a “rightful role” in early childhood contexts. This scoping paper reports on a review of literature relating to digital play for children aged birth to five years, with the aim of further understanding digital wellbeing. Csikszentmihalyi’s flow theory serves as a theoretical framework for understanding why many young children enjoy digital play and become deeply engaged, with a disconnect between how young children and adults perceive digital play. Concerns about children’s deep immersion with digital play are interrogated to understand the connections with perceived addictive traits. The review highlights the critical importance of supporting children’s agency and digital citizenship skills from a young age, including the ability to critique content, balance screen-time with non-screen time and to develop self-control and self-regulation as a means to promote long-term positive outcomes for children in their digital lifeworlds and beyond.