Background: Artificial intelligence (AI) technology and digitalization in healthcare have advanced quickly in recent years, altering all sides of daily life and playing an expanding role in nursing education and healthcare. In order to succeed academically and utilize technology in nursing education and practice in the future, nursing students must have adequate digital health literacy. Aim of the study: This study aimed to measure the digital health-literacy levels among baccalaureate nursing students and its relation to their perception and attitudes towards the application of AI. Design: A descriptive correlational design was utilized to fulfill the aim of this study. Setting: The current study was conducted in the Faculty of Nursing, Cairo University. Sample: A convenient sample of (128) Baccalaureate nursing students who registered for the 4th academic level - 1st semester of 2019/2020 academic year. Tools: Tow tools were used as follows; Nursing students' perspectives on artificial intelligence questionnaire and II. Self-administered Digital Health Literacy scale. Result: The majority of baccalaureate nursing students have a moderate to a high level of digital health literacy. Also, there was a higher perception among baccalaureate nursing students regarding the application of AI in nursing. Moreover, their attitudes and feeling toward AI were moderate. Conclusion: The study finding revealed that there was no statistically significant correlation between the total score of AI in nursing and the total score of digital health literacy among baccalaureate nursing students. Recommendations: Develop an innovative undergraduate curriculum that includes opportunities for students to experience digital healthcare technologies such as AI to improve their digital competency and assist learners in its entry-level nursing programs access to the necessary digital tools.