The digital environment offers opportunities that can enrich children’s physical and mental well-being. Yet, false and misleading digital content, including disinformation and misinformation, is a risk. It can deepen political polarisation, erode public trust in democratic institutions and threaten public health. Media literacy is part of a suite of policies countries are using to maximise digital opportunities and minimise digital risks. This paper has four parts. First, it outlines current research and definitions relating to false and misleading digital content and looks at children's behaviour in the digital environment. Second, the concepts of media literacy, digital literacy and other relevant competencies are discussed. Third, research on children’s experiences of false and misleading digital content and their perceived levels of digital media literacy is analysed. Finally, policies and practices which deliver media literacy are discussed. Research limitations and other barriers, such as teacher training, are described.