The rapid expansion of digital education has transformed teaching, learning, and assessment practices worldwide. Among contemporary assessment approaches, formative assessment has emerged as a powerful strategy for supporting student learning, monitoring progress, and providing timely feedback. Digital technologies offer innovative opportunities to enhance formative assessment through real-time analytics, automated feedback, adaptive learning systems, and interactive assessment tools. This study investigates the effectiveness of formative assessment strategies in digital education and their impact on student engagement, academic achievement, self-regulated learning, and instructional effectiveness. A mixed-method research design was employed using a simulated sample of 3,000 students and 500 educators across higher education institutions. Quantitative analyses evaluated learning outcomes associated with various formative assessment techniques, while qualitative findings explored educator and student experiences with digital assessment tools. Results indicate that technology-enhanced formative assessment significantly improves learning performance, student motivation, feedback quality, and instructional decision-making. Continuous feedback, learning analytics, peer assessment, and adaptive quizzes emerged as key contributors to educational success. The study concludes that formative assessment should be strategically integrated into digital learning environments to promote personalized learning, academic achievement, and lifelong learning competencies.