This study investigates the mechanisms and challenges of knowledge transfer in the digital era, aiming to provide insights for organizations, policymakers, and researchers. Drawing upon an extensive review of the literature, this research examines various technology-enabled mechanisms for knowledge transfer, including collaborative platforms and tools, knowledge repositories and databases, and virtual communities and online forums. It explores how these mechanisms facilitate knowledge sharing, collaboration, and learning in the digital age. The study also identifies and analyzes the challenges that impede effective knowledge transfer in the digital realm. These challenges range from technological barriers, such as information overload and data security concerns, to social and cultural obstacles, such as resistance to change and knowledge hoarding. The impact of these challenges on knowledge transfer processes and outcomes is explored in depth. The findings of this study have practical implications for organizations, suggesting strategies to overcome the identified challenges and enhance knowledge transfer practices. It also highlights policy implications, emphasizing the importance of digital infrastructure development, digital skills education, data privacy regulations, and support for knowledge management systems.