The digital era has transformed education, making digital literacy essential for teachers to integrate technology and enhance student outcomes effectively. This study aims to examine how school culture influences teachers’ performance through their digital literacy, focusing on junior high school teachers in Malang City, East Java, Indonesia. Employing a quantitative approach, data were collected from 214 teachers out of a 457 population using questionnaires. The analysis was conducted through AMOS for Confirmatory Factor Analysis (CFA), SPSS for descriptive statistics, and PLS-SEM for hypothesis testing. The findings reveal that school culture significantly affects teachers’ digital literacy (Ho1) and teacher performance (Ho2) with supportive and innovative environments, while rigid cultures limit creativity. Furthermore, digital literacy was found to enhance teachers’ performance (Ho3) and mediate the impact of school culture on teachers’ performance (Ho4), enhancing teachers’ effectiveness in planning, implementing, and evaluating instruction. This study highlights the critical role of school culture in shaping digital literacy and offers new insights for improving teacher practices in diverse educational settings. Moreover, the role of education policies in fostering a collaborative school culture that enhances teachers’ digital literacy and performance, leading to improved educational outcomes, plays a crucial implication.