Purpose This study aims to address the need for robust conceptual foundations in the digital nomadism discourse through a systematic literature review (SLR). It delves into digital nomadism within sustainable tourism, providing valuable insights to foster community development. Design/methodology/approach This study uses a rigorous eight-step process that combines an SLR and a system dynamics approach. In the SLR phase, the authors use the theory, context, characteristics and methodology framework to identify key variables for a dynamic model of sustainable tourism through digital nomadism, following detailed search and selection criteria based on PRISMA guidelines. The second phase uses causal loop diagrams (CLDs) from the literature review to visualize relationships and inform future research directions. The CLD model is validated through literature-based and stakeholder interaction processes, focusing on the social, economic and environmental dimensions, resulting in the development of a robust conceptual model. Findings This study identified 28 theories, including agency–structure theory, travel career ladder theory, stakeholder theory and grounded theory, among others. Semi-structured interviews were the primary research method. Major themes explored encompass community interactions, work lifestyles, cultural aspects, financial considerations, infrastructure and policy. The proposed conceptual model aims to scrutinize relationships across economic, environmental and social dimensions, providing a foundation for investigating and promoting sustainable tourism. Research limitations/implications Policy implications involve refining taxation policies to maintain tax bases, promoting collaborative economic models and enforcing environmental regulations. Additionally, integrating community planning infrastructure and implementing demographic strategies to manage potential population shifts are crucial. Policies supporting education, skill transfer, health and well-being initiatives contribute significantly to fostering sustainable tourism practices and enhancing community vitality. Originality/value To the best of authors’ knowledge, this study is the first in the digital nomadism space to propose a conceptual model for sustainable tourism adoption.