This study examines the impact of digital transformation on work-related stress and employee engagement in Moroccan universities, while also exploring the role of organizational resources in mitigating these effects. A quantitative approach was adopted, utilizing a questionnaire survey conducted among 300 university teachers and students from both public and private universities. Structural Equation Modeling (PLS-SEM) was employed to analyze relationships between digital transformation, work-related stress, and employee engagement. The findings indicate that digital transformation increases work-related stress, which negatively affects employee engagement. However, the presence of strong organizational resources, such as training and managerial support, significantly reduces this negative effect. Digital transformation poses both challenges and opportunities in higher education. While it enhances accessibility and efficiency, it also contributes to stress and disengagement among employees. Universities must adopt supportive organizational measures to minimize these adverse effects and sustain employee engagement.