This study examines the transformative role of digital tools in reshaping key functions of Human Resource Management (HRM), including recruitment, training, performance management, and employee engagement. Employing a mixed-method approach, it integrates quantitative survey data with qualitative insights from HR professionals to assess the impact of digital technologies on HR functions. The results indicate a 35% improvement in recruitment effi ciency, enhanced employee development, and significant advances in perfor- mance management through the adoption of digital tools. Moreover, digital engagement platforms have reduced employee turnover, particularly in remote work environments. Despite these benefits, challenges such as resistance to change and digital skill gaps persist, requiring attention for successful imple- mentation. The study contributes to academic literature by addressing these challenges and offering practical guidance for organizations. Future research should explore the long-term effects of digital transformation and the role of emerging technologies like blockchain in further revolutionizing HRM prac- tices.