The present study explores the psycho-emotional dimensions of language learning, focusing on the interplay between learner digital tool efficacy, anxiety, motivation, and engagement in technology-enhanced environments. Using a random sampling approach, data were collected from 409 EFL students in Chengdu, Urumqi, Beijing, and Chongqing. Statistical analyses, conducted via SPSS (version 27) and AMOS (version 24), included descriptive statistics, correlation analyses, regression, and structural equation modeling (SEM) to uncover relationships and visualize complex interactions among the variables. The findings revealed significant relationships between digital tool efficacy, anxiety, motivation, and engagement. Higher digital tool efficacy was positively correlated with motivation and engagement, while negatively correlated with anxiety. Motivation emerged as a critical mediator between digital tool efficacy and engagement, emphasizing its role in transforming digital confidence into active participation. Additionally, digital tool efficacy was identified as a strong predictor of reduced anxiety, increased motivation, and enhanced engagement. These findings highlight the importance of fostering digital tool efficacy to alleviate anxiety, enhance motivation, and boost engagement among EFL learners in technology-enhanced educational contexts.