As digital technology becomes increasingly integral to young children's lives, understanding its impact on psychosocial well-being is essential for guiding evidence-based recommendations for parents and policymakers. The current study provides a systematic review of the literature and meta-analysis of the relationship between digital technology use and psychosocial well-being in young children aged 4-6 years. A systematic search of eight databases was undertaken for studies published between January 2011 and February 2024. Studies reporting any quantitative measure of children's digital technology use (e.g., screentime, content, context, or specific device use - tablets, smartphones, computers, TV, gaming) and an indicator of psychosocial well-being (affect, behavioral difficulties, social functioning, and parent-child relationship quality) were included. After screening 3,554 records, 51 studies were included in the review (n = 83,862). The meta-analysis showed negative correlations between children's digital technology use and their overall psychosocial well-being (r = -.12, 95 % CI [-.24, -.00]), social functioning (r = -.06, 95 % CI [-.10, -.02]), behavioral functioning (r = -.10, 95 % CI [-.13, -.07]), and parent-child relationship quality (r = -.13, 95 % CI [-.20, -.06]). Of the few studies that measured technology use in ways other than duration (e.g., content, context), findings were mixed. While the negative relationship between amount of digital technology use and psychosocial well-being provides some support for recommendations to limit young children's digital technology use, a range of causal mechanisms should be considered. To understand whether these relationships vary dependent upon contextual factors of children's digital technology use, further research is required.