The digital transformation of the social sphere has become one of the important directions of the state digital strategy aimed at forming an effective service digital state. Digitalization is the mechanism of the state digital strategy. It constitutes the transfer of all social services from offline to online. Accordingly, a theoretical and methodological justification of the institutional, organizational, and legal foundations of the digital transformation of the social sphere is the purpose of the article. The paper provides an overview of attempts to introduce electronic technologies, in particular e-government, in the practice of public administration during the years of independence of Ukraine. On this basis, the emphasis is on the main problems that have accumulated in the social sphere. The Strategy for Digital Transformation of the Social Sphere approved by the order of the Cabinet of Ministers of Ukraine dated October 28, 2020, is analyzed in detail. The purpose of the Strategy is to ensure European standards of functioning of social protection institutions, provision of social services, and financial stability of the social sphere, and to increase its transparency and optimization of its administrative expenditures. Particular attention is paid to creating a new mechanism for implementing social policy on a fundamentally new basis – the unified information system of the social sphere created taking into account the latest information and management technologies, common modern standards of service quality, and the ability to make effective organizational and structural decisions. All types of state social support and assistance should be administered through this system, which will radically change the social sphere of Ukraine. The main results of the digital transformation of the social sphere should be: first, a convenient and accessible social service for citizens and overcoming corruption in the social sphere; secondly, the optimization of social spending of the state.