This study examines the relationship between digital transformation and the competitiveness of Bulgarian regions within the context of the European Union's digital transition and Smart Specialisation policies. The primary objective is to assess the impact of digitalisation on regional economic development, productivity, innovation capacity, and regional convergence. The research is grounded in the theoretical frameworks of regional competitiveness, the digital economy, and sustainable development. It employs a comparative and analytical approach based on indicators reflecting digital infrastructure, digital skills, business technological readiness, innovation performance, and institutional quality. The findings reveal significant disparities in the level of digital transformation across Bulgarian regions. Regions characterised by a higher concentration of human capital, well-developed information and communication infrastructure, and stronger innovation ecosystems demonstrate higher levels of productivity, employment, investment attractiveness, and economic competitiveness. Conversely, peripheral and less-developed regions continue to face challenges related to limited digital connectivity, shortages of skilled labour, and lower levels of digital technology adoption by businesses and public institutions. The results confirm that digital transformation is a strategic driver of regional competitiveness by fostering innovation, improving resource efficiency, and creating new opportunities for entrepreneurship and sustainable economic growth. Furthermore, the study demonstrates that the effectiveness of the digital transition depends not only on technological investments but also on institutional capacity, governance quality, and the ability to align regional development policies with European strategic objectives. The study concludes that accelerating digital transformation can contribute to reducing regional disparities and strengthening the long-term competitiveness of Bulgarian regions. Consequently, it recommends the implementation of coordinated policies aimed at expanding digital infrastructure, enhancing digital competencies, supporting innovation, and promoting technological modernisation of enterprises, particularly in economically lagging regions. Objectives: This paper aims to examine the impact of digital transformation on the competitiveness of Bulgarian regions in the context of the European Union’s digital transition and Smart Specialisation policies. Methods/Approach: The study applies a comparative and analytical approach based on indicators related to digital infrastructure, digital skills, business technological readiness, innovation activity, and institutional quality.. Results: The findings reveal significant regional disparities in the level of digital transformation across Bulgaria. Regions with stronger human capital, better ICT infrastructure, and more developed innovation ecosystems demonstrate higher productivity, employment, investment attractiveness, and competitiveness.Conclusions: Digital transformation is a strategic factor for improving regional competitiveness and reducing territorial disparities. Coordinated policies are needed to develop digital infrastructure, enhance digital skills, support innovation, and promote technological modernisation, especially in less-developed regions.