Objective: This study mainly explores the impact of professional identity and digital literacy on the teacher ability of normal school graduates in the context of smart education and its impact channels and mechanisms. Theoretical Framework: Based on the research objectives and research hypotheses, we constructed a comprehensive conceptual model to understand the impact, impact pathways and mechanisms of professional identity and digital literacy on teacher competency of normal college students Method: The research uses a method that combines theoretical analysis and empirical investigation and combines positive psychology and teachers' professional development stage theory. This study established a competency structure model suitable for measuring normal college students. It used scale tools such as the College Students' Professional Identity Scale and the College Students' Learning Engagement Scale and used statistical methods such as structural equation modeling (SEM) and multiple regression to analyze the questionnaires. Results and Discussion: Examine the impact of professional identity and learning investment on teacher competency of normal college students, analyze the size of the influencing factors, measure the current competency level of normal college graduate teachers, analyze existing problems, and propose improvement strategies, thereby exploring the transformation of teacher education under the background of smart education basic logic and realistic path. Research Implications: The sample size and representativeness of this study are limited to one local undergraduate normal university. Therefore, there are still many shortcomings in this study, which need to be further deepened and improved in future research. Originality/Value: This study explores the relationship between teacher competence and digital literacy, professional identity, learning engagement, and learning efficacy among teacher trainees, and examines the mediating role of learning engagement and learning efficacy in the relationship between professional identity and learning. This is beneficial for us to gain a deeper understanding of the formation of teacher competence among teacher trainees in the context of smart education