In the modern age, social networks and digital technologies represent fundamental components of everyday life, especially among adolescents and young people. This paper explores the multifaceted impact of digital media on social skills, identity, and mental health of young people. The analysis shows that while digital platforms such as Facebook, Instagram, Snapchat, and TikTok offer plenty of opportunities for education and socialization, they also carry potential risks including anxiety, depression, and self-confidence challenges. Developing media literacy has been identified as an important strategy for minimizing the negative effects and maximizing the positive aspects of digital engagement. Establishing educational programs that provide young people with tools for critical thinking and safe use of the Internet can help preserve their mental health and social well-being. The paper emphasizes the importance of a balanced approach in the use of digital media, where educational institutions, parents, and the entire community play a vital role in supporting young people. Through joint efforts, we can transform the challenges of the digital era into opportunities to create an empowered, informed, and emotionally healthy young population. Given the increasing integration of digital technologies into the education system, it is necessary to ensure that young people develop the ability to distinguish between quality and less reliable information on the Internet. It is also necessary to teach young people about the importance of maintaining digital hygiene, including protecting personal data and managing digital identity in a healthy way. Furthermore, creating an inclusive digital environment that promotes diversity and tolerance can help reduce the digital divide and ensure that all young people have equal opportunities to learn and grow through digital platforms. These steps are key to harnessing the full potential of digital media in shaping a resilient and adaptable young generation.