This paper explores how digital literacy and behavioral biases of Millennials and Generation Z influence their capital market investment decisions by means of financial literacy as a moderator. Comprising 424 individuals overall, the study focuses on Indonesian responses. Those who completed the study fall into two different generations: Gen Z, born between 1997 and 2012, and Millennials, born between 1981 and 1996. The results show that overconfidence, herding, and the disposition effect which usually leads to less-than-ideal outcomes have a major impact on investing decisions. Over all four independent variables disposition influence, overconfidence, herding, and digital literacy financial literacy and investment choices show a favorable link. By the interplay of digital literacy with financial literacy, investment decision-making is improved, and results follow. All things considered, financial literacy helps smart investors a lot since it helps them to make wiser and more informed investment selections.