Students, teachers, families and other community members use digital technology as an educational tool in formal, non-formal and informal learning environments. While its use is widespread, increasing concern has emerged about its effects on children, particularly in relation to their empathy and attention capacity, as these dimensions are crucial to students' development and success. The effects of using digital technology are embedded in the context in which it is employed. These effects can be different, depending on how technology is used, and to what purpose. This analytical report reveals the most relevant and up-to-date scientific contributions worldwide about the effects of the use of digital technology on children's empathy and attention capacity. The report synthesises existing knowledge gathered from an extensive literature review that has identified evidence from scientific articles and relevant European Commission (EC) official reports on the topic of focus. The guiding question of the present report is: What are the effects of the use of digital technology on children's empathy and attention? The concepts of digital technology, children's empathy and attention capacity are at the core of this report. The key findings of our in-depth literature review are divided into two main sections: (1) the effects of the use of digital technology on children's empathy; and (2) effects of digital technology use on children's attention capacity. Based on this analysis, the report provides useful recommendations for the diverse agents involved in children's education, from policy makers and stakeholders to teachers and families. [This report was prepared with NESET.]