The sudden shift to online remote learning prompted by COVID-19 plunged many Indonesian universities into chaos. They grappled with the daunting task of adjusting to remote teaching and learning, often with little to no prior experience. This was particularly challenging because most universities in Indonesia follow traditional methods, primarily conducting classes in person on campus. This study seeks to empirically explore the indirect effects of digital literacy on operational accounting competencies. Furthermore, it aims to investigate whether student engagement in online learning serves as a mediating variable in the relationship between digital literacy and operational competence among fifth and seventh-semester Accounting Sharia students at Universitas Islam Negeri (UIN) KH Abdurrahman Wahid Pekalongan, Indonesia. The study generates survey data using a predesigned questionnaire completed by 113 students. Data are analyzed using descriptive analyses and PLS-SEM (Partial Least Square- Structural Equation Modeling). The statistical test results indicate that (1) digital literacy has no direct positive significant effect on operational accounting competencies (2) digital literacy has a direct positive significant effect on online student engagement, (3) online student engagement has a direct effect on operational accounting competencies, and (4) digital literacy indirectly influences operational accounting competencies through student engagement in online learning. These findings suggest a full mediation model because digital literacy can enhance operational accounting competencies only if students have high engagement in online learning.