Reliance on digital technology can lead to detrimental effects. However, it is essential to recognise the positive potential of digital technology to support well-being. This chapter explored how digital technology can be used and designed to optimise people’s well-being. We argue that digital technology in and of itself is neither good nor bad, but how capabilities are harnessed determines its impact on well-being. We build on the capability approach, which explains how technologies enable people to live their lives in ways that they value. Rather than focusing on how digital technologies facilitate predefined tasks, jobs, or activities, scholars should consider how they allow people to live their lives in valuable ways. Understanding and dealing with digital technologies’ positive and negative effects requires expertise and content knowledge from diverse disciplines. Focusing on developing capabilities is a prerequisite for dealing with digital technologies and functioning well.