The rapid expansion of digital environments has fundamentally reshaped the ways individuals processed, interpreted, and produced language, raising new questions for applied linguistics and psycholinguistics. This study aimed to analyse how digital contexts influenced language cognition and to identify their implications for applied linguistics in the digital era. The research adopted a structured literature review methodology, synthesising findings from peer-reviewed studies published between 2006 and 2025 and indexed in major international databases. The analysis integrated psycholinguistic and applied linguistic perspectives to provide a comprehensive understanding of the phenomenon. The results demonstrated that digital reading environments were associated with a measurable shift toward faster but less in-depth text processing, often resulting in reduced comprehension accuracy compared to traditional reading formats. At the same time, multimodal communication enhanced the efficiency of information processing but increased cognitive load due to the integration of multiple semiotic channels. The findings also revealed that interaction with AI-based language systems improved linguistic productivity and task performance, while simultaneously encouraging a tendency toward reduced critical evaluation of generated content. Overall, digital environments contributed to the emergence of a new type of language cognition characterised by increased processing speed, reliance on external cognitive resources, and adaptation to multimodal input. The study highlighted the need to reconsider traditional models of language competence and incorporate digital factors into applied linguistic research and pedagogy. The findings had practical implications for language education, digital literacy development, and the design of human-AI interaction systems
digital communication; cognitive processing; multimodal discourse; human-AI interaction; digital literacy; language processing