Dairy farming is an important activity in the rural economy of Karnataka as it brings in income, employment, and food security. The adoption of digital technologies including mobile applications, artificial intelligence, Internet of Things (IoT), and digital payment systems, and livestock management platforms have altered the conventional practices of dairy farming. In this research, the role of digital technologies in the development of the dairy sector, the growth of milk production, dairy infrastructure, and farmer involvement in the work of Karnataka is studied in the context of the change in the period 201920 to 202425. The secondary data were gathered using government reports, Karnataka Milk Federation (KMF), NDDB publications and digital agriculture reports. The results indicate a huge increase in digital adoption, milk purchase, and dairy cooperative membership among districts. The analysis points out that digital innovation has contributed to increased productivity, market access, veterinary services, and financial inclusion among dairy farmers. The study finds that digital transformation is now a key factor in promoting sustainable dairy operations and rural economic development in Karnataka.