<p>Traditional hydraulic valves face critical limitations in response speed, control accuracy, and compatibility with digital control systems. These shortcomings hinder the development of high-performance hydraulic systems required for modern industrial automation and intelligent machinery. Digital hydraulic valves, as an innovative alternative, address these challenges by innovative structure and advanced control strategies, achieving millisecond-level response and precision tracking. This paper presents a comprehensive review of the latest advancements and technological innovations in digital hydraulic valves. The focus is primarily on structural optimization and control strategies that enable these systems to perform with greater precision and speed compared to traditional hydraulic valves. In addition to valves, this review also delves into the progress of other key digital hydraulic components, including digital pumps, digital accumulators, digital actuators, and digital sensor systems. The practical applications of digital hydraulic technology are also explored, analyzing its advantages and challenges in industrial applications. Finally, this review highlights the potential of integrating digital hydraulic technology with emerging fields such as material science and modern control systems. This review provides theoretical foundations and technical references for engineers and researchers in the hydraulic field, contributing to the development of hydraulic technology and offering new ideas for future research.</p>