Social media significantly influences the moral values and behaviors of Muslim youth in Kano State, Nigeria, offering benefits such as educational resources, networking opportunities, and community building, while simultaneously exposing them to inappropriate content, cyberbullying, and trends that may conflict with Islamic values. Hence, the rapid spread of digital technology creates both possibilities and disadvantages for Muslim youth in Nigeria, especially in Kano State, where religion and cultural beliefs have a considerable impact on social standards. This duality creates dilemmas for young people as they navigate the digital landscape, striving to balance social connectivity with their moral and religious principles. This research investigates the "digital dilemma" confronting young Muslims, examining how social media effects their religious identity, ethical ideals, and socio-political activity. The study looks at both the good and bad effects of digital platforms, emphasising issues including exposure to hazardous information, cyber dangers, and the loss of traditional values. At the same time, it investigates how faith-based digital literacy and smart social media activity might help Muslim adolescents manage these problems while upholding Islamic ideals. Using qualitative and quantitative methods, this research evaluates the role of religious academics, community leaders, and digital influencers in encouraging teenagers towards responsible and productive social media usage. The findings imply that combining faith-based concepts with digital literacy initiatives may assist Muslim adolescents in reaping the advantages of social media while minimising its hazards. The study finishes with bold recommendations for promoting a balanced and purposeful online presence, such as ethical digital participation, legislative advocacy, and community-driven projects.