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An individual’s digital mindset is crucial to navigating digital transformation. Current studies reveal a lack of construct clarity jeopardizing further research. We address this gap by conceptualizing the construct and its multidimensionality, and by developing and validating a scale. Following a multi-grounded theory approach (n = 28) we identify three dimensions of digital mindset: digital consciousness, digital expertise, and digital business acumen. Subsequently, we developed and validated the digital mindset scale in five phases. We generated 95 items. Exploratory (n = 167) and confirmatory (n = 658) factor analyses supported the dimensions. We added items and reassessed the psychometric properties (n = 152), and established convergent and discriminant validity (n = 243). Finally, we examined relationships with innovative and entrepreneurial behavior, supporting nomological and incremental validity (n = 145). Our research paves the way for empirical studies and equips practitioners to assess employees’ digital mindset throughout the professional lifecycle.