This study investigated the integrated effect of Digital Storytelling (DST) and Project-Based Learning (PBL) on the creativity of teachers and student literacy in English language classes. Using a mixed-methods design, the research consisted of 30 teachers and about 450 to 480 pre-intermediate and intermediate English language students. Quantitative data were gathered via pretest-posttest measures by the Teacher Creativity Inventory and standardized literacy assessments, while qualitative data consisted of teacher interviews, classroom observations, and analysis of student-produced artifacts. Results showed an increase of about 21% in scores of teacher creativity and there were 17% to 19% literacy gains across reading, writing, and oral communication. Thematic analysis pinpointed an improvement in student engagement, narrative coherence, and collaboration. Although there were challenges such as time limits and resource availability, the findings in general showed the potential of DST and PBL to foster creativity, critical thinking, and digital fluency. This study presents actionable insights for curriculum developers, teacher educators, and policymakers, promoting the strategic incorporation of DST and PBL to improve both teaching practices and student learning outcomes in English language setting.