Digital transformation has emerged as a critical driver of economic growth, organizational competitiveness, and public-sector modernization. While developed economies have made significant progress in adopting digital technologies, many developing economies continue to face substantial barriers that hinder successful digital transformation initiatives. These barriers include inadequate digital infrastructure, limited financial resources, insufficient digital skills, regulatory challenges, cybersecurity concerns, organizational resistance, and unequal access to technology. This study examines the major obstacles affecting digital transformation in developing economies and evaluates their impact on business performance, public service delivery, and socio-economic development. Using a narrative review methodology, the study synthesizes evidence from academic literature, international development reports, and digital economy assessments. Findings indicate that overcoming these barriers requires coordinated efforts among governments, businesses, educational institutions, and international organizations. Strategic investments in infrastructure, digital literacy, policy reform, and innovation ecosystems are essential for accelerating digital transformation and achieving sustainable development goals.