Micro-credentials (MCs) and digital badges (DBs) are transforming the world of higher education (HE) by providing a modular, stackable, and competency-based pathway of learning that is not confined to the traditional degree programs. The present paper synthesizes the current literature on MCs and DBs, including their design, adoption, and implementation, as well as future trends, institutional benefits, challenges, and governance concerns. The current research generally points to positive links