Developing children's abilities to act safely, respectfully, and responsibly in digital environments has been an essential component of educational systems for all ages. This study aims to explore what adequate digital competence is in early childhood education and how preschool teachers characterise young children's adequate digital competence. The research seeks to address these questions by conducting in-depth interviews with 13 preschool teachers at three preschools in Sweden. The collected data were analysed using thematic analysis in accordance with the Grounded Theory perspective. Preschool teachers characterize adequate digital competence in early childhood education as more than just a skillful and safe use of digital technologies. The study reveals seven key themes in which preschool teachers characterise children's adequate digital competence: (a) to become familiar with digital technologies; (b) to dare try digital technologies; (c) to use digital technologies; (d) to have a critical approach toward digital technologies; (e) to have ethical media competence, which includes moral, formal, and legal responsibilities; (f) to have problem-solving skills; (g) and to be producer, not just a consumer of digital technologies. By framing and exemplifying children's adequate digital competence, the findings of this study offer a potential framework for preschools and preschool teachers to foster children's digital competences at an appropriate level.