The use of digital tools in the English as a foreign language (EFL) classroom has increased dramatically over the last decades. Even though digital tools have been used in English language learning since the 1980s, the rapid development of new technology and recent demands in curriculum for digitalisation has increased the need for digital competence among teachers. This study presents a systematic literature review exploring teachers’ perceptions of the use of digital tools in the EFL classroom, and the teachers’ perceptions of their own competence to use digital tools in teaching. Peer-reviewed articles on EFL in Nordic countries published between 2010-2025 on Educational Resources Information Centre(ERIC) and Linguistics and Language Behaviour Abstracts (LLBA) were identified and analysed using thematic analysis. The findings indicate that teachers’ perceptions of digital tools in EFL classrooms are primarily positive and digital tools are seen as valuable and providing opportunities through increased engagement, authenticity, multimodality and ability to individually adapt content. Digital tools are mostly perceived as a complement to traditional methods rather than a replacement. Furthermore, digital tools can also affect the teacher’s role in the classroom and support more student-centred learning. However, these positive perceptions depend on teachers receiving sufficient time and support in learning how to effectively use these tools. Teachers perceive that digital tools are not inherently enhancing the learning in the classroom but become valuable through reflection and careful pedagogical design. The main challenges to integrate digital tools were perceived to be time constraints, practical digital competence and challenges with less autonomous groups. Teachers own digital competence is perceived as limited but improvable. Many teachers perceive themselves to have basic technological knowledge. However, teachers also express a lack of technological knowledge to use digital tool in more advanced collaborative and multimodal learning in online or hybrid spaces, in practice. To keep up with the demands of the rapid digitalisation, teachers perceive a need for professional development and time for practice, collegial learning, supervised projects and positive experiences.