This study aims to explain the challenges of teachers in the digital era 4.0 and readiness to face these challenges. Through literature review. The author explains that there are several ways to face challenges education in the era of the industrial revolution 4.0 through capacity building and teacher skills by playing an active role in school. In addition, this research is to see the role of digital in education and student psychology. This research is a descriptive qualitative research. Data was collected by means of observation, interviews, and giving a questionnaire. The analysis technique uses interpretive analysis of the results of activities based on instruments. The results showed that the digital era 4.0 considered important for teachers to master in the 21st century, including the ability of teachers to use digital-based learning media. While the teacher develops psychology, namely the ability to creativity, critical thinking, collaboration, communication, innovation, problem solving, ICT skills, and character.