The rapid growth of financial services has changed the way people make financial transactions especially among Gen Z. In Pakistan, many digital wallets like sadapay, nayapay jazzcash etc, has become more and more used due to their easy navigation and usability. However, despite their widespread availability, the factors impacting both the usage and acceptance of E-Wallets among university students remain undiscovered. While older studies were focused on technology related factors such as perceived usefulness and easy to use, limited attention has been given to the role of digital financial literacy in sporting long term use of E-Wallets. The study examines the influence of digital financial literacy on the adoption and continuous usage intention of E-Wallets among university students of Pakistan. Specifically the study investigates the direct effect of digital financial literacy on digital financial self efficacy, trust and E-Wallet usage as well as impact of these variables on users continuous usage intention. The study uses a quantitative research approach based on the positivist research philosophy and deductive reasoning. An example entry, cross sectional research design will be used and primary data will be collected through a structured survey from students in Pakistan. The finding of this study will give expensive insights into the role of digital financial literacy in showing sustainable digital payment behaviour. The result will contribute to the already proven literature on digital financial services and help E-Wallet providers, Financial institutes, policy makers in developing plans to better digital financial literacy, strengthen user trust and confidence, implement digital wallet adoption and encourage the long term use of digital payment technologies in Pakistan.