<p>This study examines the effect of digital leadership on organizational performance in digital transformation, a strategic priority for public-sector organizations seeking to enhance service quality, transparency, and public value. While digital leadership has been increasingly recognized as a key driver of transformation, less is known about the conditions under which it translates into improved organizational performance in rule-bound public-sector contexts. Drawing on dynamic capability theory, this study examines the role of strategic agility as an enabling organizational capability that shapes the effectiveness of digital leadership. Using survey data from public-sector organizations, this study empirically examines the relationships among digital leadership, strategic agility, and organizational performance. The findings indicate that digital leadership is positively associated with organizational performance; however, this relationship becomes substantially stronger when organizations exhibit higher levels of strategic agility. Specifically, strategic agility enhances organizations’ ability to align leadership with intent with coordinated action and timely resource reconfiguration. This study contributes to the literature by clarifying the boundary conditions under which digital leadership yields performance outcomes in public-sector environments characterized by institutional constraints. From a practical perspective, the findings suggest that public-sector digital transformation initiatives should move beyond technology adoption and leadership development alone and, instead, emphasize building strategic agility to ensure effective implementation and sustained performance improvements.</p>