The implementation of new technologies has gained traction in language teaching and learning practice as it gives learners the opportunity to develop their digital competence and language skills. One of the approaches employing technologies is digital storytelling which refers to the combination of multimedia production and narrative for educational purposes. Existing research mainly focuses on digital storytelling but remains inconclusive about learners’ storytelling development and engagement level in composing stories. To bridge these gaps, the present study aims at (1) investigating the development of EFL learners’ speaking skills while creating stories, and (2) examining if the use of digital storytelling promotes learners’ engagement. Data for the study were collected from a project with the participation of sixty six learners assigned into a control and an experimental group. Both qualitative and quantitative methods are applied for the analysis of data derived from a pretest-posttest design and an engagement questionnaire. The findings demonstrated that when students composed multimodal texts and exploited digital materials for their stories, they outperformed the control group in terms of speaking skills and engagement level. Such findings imply that digital storytelling has the potentials in a pedagogic context for boosting students’ learning engagement and facilitating better speaking outcomes.