This research aims to study and demonstrate the impact of using digital transformation technology on improving he quality of government financial reports Traditional financial reports are no longer able to keep pace with digital developments and meet the needs of their users in contemporary technological business environment. To achieve the study's objective, the descriptive-analytical approach was adopted as the most suitable for the nature of the research problem. A questionnaire was designed as the study tool, and information and data were collected and analyzed using the spss statistical analysis program. The study showed that applying digital transformation technology in public institutions leads to the preservation of the basic characteristics of the quality of government financial reports by increasing their speed of preparation, enhancing their credibility, and reducing manipulation and fraud. The field study also clearly confirmed the existence of a statistically significant correlation between digital transformation and the improvement of quality of financial reports by achieving relevance, timeliness, completeness, clarity, and reducing erroredmanipulation. The study revealed a number of challenges and difficulties facing Libyan public institution when implementing digital transformation technology. The study recommended the necessity for public institution to adopt digital technologies and work to overcome the difficulties they face in implementing technological technologies by strengthening the digital infrastructure, developing a clear digital strategy aligned with the vision and objectives of public institutions, and providing financial resources and digital skills. The study also included a set of other findings. Key words: Digital Transformation Technology – Quality of Financial Reports – Information Technology.