Young children are growing up in an increasingly complicated digital world. Laboratory-based research shows it is cognitively demanding to process and transfer information presented on screens during early childhood. Multiple explanations for this cognitive challenge have been proposed. This review provides an updated comprehensive framework that integrates prior theoretical explanations to develop new testable hypotheses. The review also considers the how the research can be generalized to the "wild" where children engage with multiple commercial products daily. It includes real-world applications for improving children's learning and memory from screen-based media by adding supportive cues and reducing distraction and interference. The review concludes with a call for future collaborative research between researchers, content developers, and families to better understand age-related changes in both short-term and long-term learning from digital media. Finally, policy makers need to be involved to ensure equitable access and to create a safe digital space for all families.