The transportation sector is currently experiencing a significant transformation dueto the influence of digital technologies, which are revolutionizing travel, goods transportation,and interactions with transportation systems. This study delves into the possibilities andobstacles presented by digital transformation in the realm of sustainable transportation.Moreover, it identifies the most effective methods for implementing digital transformation inthis sector. Furthermore, our analysis sheds light on the potential impacts of digitaltransformation on sustainable development and environmental performance indicators withintransportation systems. We discover that digital transformation can contribute to reducedgreenhouse gas emissions, improved air quality, and increased resource efficiency, amongother benefits. Nevertheless, we emphasize the potential risks and uncertainties associatedwith digital transformation, including concerns regarding data privacy, security, and ethics.Collectively, our research provides valuable insights into the opportunities and challengespresented by digital transformation in sustainable transportation. It also identifies bestpractices for successfully implementing digital transformation in this sector. The implicationsof our findings are significant for policymakers, businesses, and other stakeholders whoaspire to drive the future of sustainable transportation through digital transformation.