The rapid evolution of digital technology has significantly transformed the banking sector in North Africa, compelling Tunisian banks to adopt comprehensive digital strategies to enhance operational efficiency, customer satisfaction, and competitive advantage. This study explores the impact of digital strategy adoption on competitive advantage within Tunisian banks, focusing on three key dimensions: quality, flexibility, and cost. Additionally, it examines the moderating roles of employee satisfaction and digital skills in strengthening the relationship between digital strategies and competitive advantage. Using a mixed-methods approach, primary data was collected from 114 bank employees through surveys, while secondary data was gathered from bank reports and industry publications. The findings reveal that digital strategy adoption significantly enhances competitive advantage, particularly through improved flexibility and cost efficiency. However, the impact on service quality was not statistically significant, suggesting a need for further investigation. Employee satisfaction and digital skills were found to play crucial moderating roles, with satisfied and digitally skilled employees more effectively leveraging digital tools to drive competitive advantage. The study concludes that Tunisian banks must prioritize employee satisfaction and digital skill development to fully realize the benefits of digital transformation. By promoting an innovative culture and allocating resources for employee development, banks can strengthen their competitive edge in a market that is becoming digital and competitive. These insights provide valuable guidance for Tunisian banks aiming to navigate the complexities of digital transformation and achieve sustainable growth.