In recent times, education has become ubiquitous due to the digital revolution. Learning is now possible from a plethora of online resources in formats such as text, audio, or video. While it is common practice to use digital formats for providing learning resources, many educators still prefer traditional methods such as paper-based (handwritten and/or typed) or in-person for assessment. This is often used to reduce the risk of plagiarism and ghostwriting, or to verify practical work achievement. On the other hand, emphasis is now being placed on learning 21st century skills which includes Information, Media, and Technology Skills (Trilling & Fadel, 2009). These fall under the general umbrella of Digital Literacy Skills. It is important for engineering students to develop these skills because it is very likely they will have use them in their work life as engineers or technicians. For example, manufacturers and suppliers of mechatronics related tools/equipment (e.g. for automation and control) now provide technical resources in digital formats such as web pages, document files, and even videos (Mathworks, n.d.; SchneiderElectric, n.d.). In addition to this, online collaborative work environments across diverse geographic locations are becoming popular and these skills are likely to very valuable. This paper considers the perspective that digital assessment outweighs traditional methods in benefits due to its applicability in the changing work environment. Traditional assessment methods could be used as a secondary tool to follow up when educators have concerns about student work submitted via digital means. Hence, the focus of this paper is on discussing some options for moving towards digital assessment for theory work (such as tests) and practical work in mechatronics related courses on the diploma and degree programmes.