This article comprehensively examines the major challenges facing school-based digital citizenship education and proposes solutions from a Muslim scholarly perspective. The primary objective of the study is to identify factors that reduce the effectiveness of digital citizenship education and to develop sustainable improvement strategies. The significance of this topic stems from its multifaceted nature, including technological infrastructure deficiencies, insufficient teacher–parent collaboration, value conflicts, and cultural differences. The research design is based on a comprehensive literature review and on a comparative analysis of international best practices. The findings reveal that a lack of reliable internet access and digital devices, particularly in under-resourced schools, limits the development of digital citizenship skills. Furthermore, low levels of parental awareness hinder the development of cyber-ethical behavior among students. In contexts where cultural compatibility with digital citizenship content is lacking, students’ motivation and willingness to participate have been observed to decline. From a Muslim perspective, digital citizenship education is not merely a set of technical competences but also a responsibility encompassing moral values such as respect for others’ rights, justice, truthfulness, and social responsibility. Therefore, it is crucial that education policies be designed with a holistic approach centered on these values. Priority actions within the proposed solutions include strengthening technological infrastructure, expanding professional development programs for teachers, increasing family involvement, and developing curricula that are sensitive to cultural differences. These measures will strengthen students’ ethical awareness, sense of responsibility, and capacity for social contribution in the digital age, thereby fostering a lasting and sustainable learning culture.