This study examines how digital construction can tackle challenges posed by the COVID-19 pandemic and its relationship with sustainability. The pandemic has severely impacted the construction industry, leading to labour shortages and business disruptions. While returning to pre-pandemic norms will take time, digitalization offers a pathway for both disruption and growth. Remote work has become crucial, and digital solutions are essential for managing the pandemic’s negative effects, ensuring work continuity, and adopting sustainable practices. A systematic review of existing literature underscores the role of digital transformation in mitigating COVID-19 impacts on the construction sector. The findings indicate that digitalization can effectively overcome industry challenges. Furthermore, integrating sustainability principles into digital construction is crucial. By leveraging digital technologies, construction processes can be optimized, waste reduced, energy efficiency improved, and resource management enhanced. Aligning digitalization with sustainability can strengthen the industry’s long-term resilience and environmental impact. In conclusion, the study illustrates that digital construction can address pandemic challenges. Through embracing digital transformation and sustainability, the construction sector can navigate these difficult times and secure a more sustainable future.