Introduction Dental students are the future of the dental profession, and since digital dentistry is becoming more prevalent, they must receive an education that incorporates digital workflows and practices. This study aimed to determine the level of dental students' knowledge, awareness, and perception (KAP) of digital dentistry, as well as the influence of the type of school funding and information source on these aspects. Methods A cross-sectional online survey was performed between September 2023 and March 2024. Dental students from Egyptian public and private universities constituted our study sample. A 22-item questionnaire with four sections was employed for data collection. The data were analyzed using IBM SPSS Statistics for Windows, Version 25, (Released 2017; IBM Corp., Armonk, NY, USA). Results Out of 390 responses, 213 (54.6%) were females, 218 (55.9%) were students, and 287 (73.6%) received computer-aided design/computer-aided manufacturing (CAD/CAM) training in their dental schools. Most of the participants had a moderate to high level of knowledge (48.50% and 43.60%, respectively); 73.10% showed a moderate level of awareness; and 73.60% had a high level of perception of digital dentistry. Additionally, it was shown that interns and participants who gained their knowledge from social media and attended hands-on workshops had significantly higher KAP scores (p ≤ 0.05). The knowledge and perception scores were also impacted by attending a private dental school (p ≤ 0.05). Furthermore, reading books or articles considerably raised participants' awareness, whereas sharing knowledge with peers greatly enhanced their knowledge (p ≤ 0.05). Conclusion Our study revealed a moderate to high level of knowledge, a moderate level of awareness, and a high level of perception about digital dentistry among the majority of participants. Moreover, it underscores the need for comprehensive digital dentistry educational courses, emphasizing practical hands-on training - especially in public dental schools - to equip future dentists with the necessary knowledge and skills.