This research explores the advantages and challenges of implementing innovative learning in higher education institutions in Malaysia, focusing on the identification of infrastructure disparities and bridging the digital literacy gap. The study reveals significant disparities in technology infrastructure between urban and rural institutions, affecting the accessibility and quality of smart learning. It also uncovers variations in digital literacy levels among students and faculty, highlighting challenges in using e-learning platforms and ensuring online privacy and security. The findings underscore the need for equitable resource distribution, strategic investments, and tailored training programs to create a more inclusive and effective smart learning environment. Ultimately, this research contributes to the ongoing transformation of Malaysian higher education towards a more accessible, engaging, and efficient learning experience.