Purpose Digital literacy has become a crucial personal competency in digital transformation across society, and its enhancement is increasingly recognized as an urgent issue. Design/methodology/approach This study employs the grounded theory method of qualitative research, collecting data through semi-structured interviews, to explore older adults’ digital literacy practices from a situated cognitive perspective, revealing that the acquisition, development, and application of digital literacy are strongly influenced by various situational factors. Findings Thematic, task, external, and internal situations affect digital behavioral intentions, acquisition strategies, digital analysis, and digital problem-solving, leading to diverse digital behavioral outcomes. The influence of composite situations on digital literacy can be summarized through three pathways: the endogenous motivation path of “wanting to” in terms of willingness, the cognitive level path of “can it” in terms of thinking, and the behavioral ability path of “can it work” in terms of operation. Originality/value This study outlines a situated acquisition framework for cultivating digital literacy: first, re-examining the situated attribute of the connotation and denotation of digital literacy from the perspective of situated cognition; second, promoting the acquisition and development of digital literacy through the suitability supply of digital resources and the cognitive transformation of individuals, focusing on both the external “affordance” of the environment and the internal motivation of individuals.