This study employed qualitative analysis to investigate the technology anxiety experienced by Iranian EFL teachers conducting online classes, taking into account their digital literacy levels. A digital literacy questionnaire was administered to a group of EFL teachers teaching English online at two branches of a language institute in Iran using the virtual classroom software BigBlueButton. Based on the questionnaire responses, 12 teachers were categorized as high (N=6) and low (N=6) digital literates. Through semi-structured interviews and reflective journals, the study delved into teachers’ anxiety regarding online teaching, identifying three primary types of anxiety: pedagogical anxiety, technological anxiety, and social anxiety. The findings revealed that pedagogical anxiety stemmed from disruptions in teaching and learning processes, technological anxiety arose from challenges such as internet disconnections, and social anxiety related to judgments based on technological proficiency. While effective language instruction was a shared concern among high and low digital literate teachers, their approaches to managing anxiety varied significantly. High digital literate teachers demonstrated greater resilience in addressing online teaching challenges, whereas low digital literate teachers experienced reduced confidence and struggled with virtual classroom management. The study emphasizes the importance of addressing technology-related anxiety among language teachers in online education to enhance teaching efficacy and student outcomes. It suggests integrating digital literacy courses and providing expert support to alleviate teaching and technology-related anxiety and stress among EFL teachers, leading to more effective teaching practices.