Digital Storytelling (DST) is one of the innovative pedagogical approaches that enhances student engagement in the learning process. However, its adoption within the Malaysian university e-learning environment remains underexplored. This study investigates undergraduate students’ perceptions of DST adoption within Universiti Malaysia Sabah's learning management system called iTEL. This study uses the Unified Theory of Acceptance and Use of Technology (UTAUT) as the guiding framework. Throughout this study, a structured survey instrument was developed to examine the influence of Performance Expectancy (PE), Effort Expectancy (EE), Social Influence (SI), and Facilitating Conditions (FC) on students’ Behavioral Intention (BI) to adopt DST. Data collection was conducted among undergraduate students in the information technology field to explore their perceptions of DST and its adoption in iTEL. The findings revealed that PE significantly influences students’ BI to adopt DST in iTEL. This implies that the usefulness of DST strongly determines students’ intention to use it. In contrast, EE, SI, and FC do not significantly affect students’ BI in adopting DST. These results imply that students’ willingness to adopt DST is primarily driven by their perception of its performance benefits rather than by ease of use, encouragement by peers or lecturers, or institutional and technical support. This study contributes to the understanding of DST adoption within the Malaysian university e-learning environment.