The dramatic adoption of digital technology has raised enormous ethical concerns within the education community. This study explored educational stakeholders' perspectives on the place of ethical literacy regarding the use of technology in initial teacher education (ITE) in Tanzania. Also, it inquired about the reasons for their perspectives and aspects that should be taught in the ITE. It was a qualitative case study with 40 participants, including pre-service and in-service student-teachers and teacher educators selected from the Dar es Salaam University College of Education. The data were collected through semi-structured interviews, Focus Group Discussions and document reviews. The findings indicate the need for ethical literacy in ITE due to the increased unethical practices, the absence of training on the ethical use of technology, the digitalisation of education, and the preparation of ethical role models. The respondents cited the concepts of cyber ethics and associated terminologies, privacy and confidentiality, intellectual property and copyrights, information accuracy, plagiarism and the National Cybercrimes Act of 2015 as key aspects for inclusion in the ITE. The study recommends that integrating ethical literacy into ITE should be mandatory. Also, regular seminars and workshops are paramount to expose in-service teachers to ethical knowledge about technology use.