This study was undertaken to determine the relationship of instructional capability of the teachers and their digital competency and challenges. It shows the competency level of teachers in utilizing technology and finds out if it stimulates their instructional capability. One-hundred sixty teachers served as respondents of the study. Descriptive correlational-survey method was use and questionnaires served as the main tool gathering information. Statistical tools were used such as descriptive and inferential statistic. The relationship was tested at the 0.05 probability level. The findings gathered in the study led to the following conclusion. All measures of digital competencies are significantly related to the instructional capabilities of teacher-respondents. While only three digital challenges are significantly related to instructional capabilities in terms of planning, methodology, and strategy. Therefore, the posited hypothesis for the study is not sustained since there is significant relationship between digital competency and digital challenges with instructional capabilities of teachers.