Digital technology is a fundamental part of the learning environment. The objective of the research is to investigate the collaborative creation of digital storytelling using gamification and its effect on EFL English Grammar learning in different modes of teaching, i.e., flipped, blended, and traditional classes, respectively. The design of the study is based on quasi-experimental research. This research included 75 EFL students who were learning English at English language institutions. From a pool of 100 male sixth-grade students aged 12–13, 75 sixth grades were chosen based on their scores in the Quick Oxford Placement Test, which equally was divided into three experimental groups. The students were chosen at random from three elementary-level intact English classrooms and were allocated to one of three conditions: blended learning instruction (N = 26), flipped instruction (N = 24), or traditional teaching (N = 25). This study lasted around eight weeks and was split into three key phases: (1) teaching the structure (past tense), (2) assisting students in creating stories in the past tense and cultivating presenting abilities, and (3) an assessment phase for overall evaluation of learning and instruction. The researcher performed the treatment for flipped, blended context, and traditional classes. In flipped and blended classes, the teacher sent a video of teaching past tense on an online platform, and then students used a storyboard app to make their stories in a gamified environment. In the flipped classroom, students presented their lectures in their online class. However, in a blended classroom, students came to class to present their lectures in a real environment (not virtual). In traditional classes, they didn’t have an online class; they didn’t have any digital apps to use; they learned past tense and presented their stories in class by playing the role of the character in their stories in front of their classmates. Following the treatments, all students took the grammar test. Pretest and post-test results were analyzed to note similarities and differences in grammar retention. The results of both tests were analyzed separately to find the mean and standard deviation of the pretest and post-test Grammar tests. Meanwhile, to investigate the comparison of group differences in EFL grammar learning with a collaborative digital storytelling approach, the researcher used a one-way analysis of variance (ANOVA) test. The results showed that the gamified instruction with collaborative creation of digital storytelling on English grammar learning in a blended learning setting improved the participants’ involvement, compelling them to be active, and significantly increased their competency in grammar, showing that the blended learning was successful in achieving the instructional goals of the class. Moreover, the results indicated a certain number of pedagogical considerations for educators, learners, curriculum developers, and administrators. Educators, policymakers, and institutions can leverage these findings to optimize instructional approaches and promote students’ self-efficacy, academic achievement, and positive perceptions of the flipped learning experience in virtual learning contexts. Further research is recommended to explore the prolonged impacts of the flipped learning approach and assess its adaptability in various educational contexts.