The study investigates the relationship between Emotional Intelligence (EI) and Employee Adaptability (EA) in Retail Small and Medium Enterprises (SMEs) in Cebu, Mandaue, and Lapu-Lapu City, focusing on the mediating role of digital workplace transformation (DWT). Emotional intelligence is associated with dimensions such as self-awareness, relationship management, self-management, and social awareness. Employee adaptability involves adjusting to changing tasks and environments, which can be measured by job performance, skills in conflict resolution, work engagement, leadership effectiveness, and work productivity, especially during the rapid digital transformations of Industry 5.0. This study included 122 respondents who were selected through purposive sampling. Using PLS-SEM, the research analyzes data using a 7-point Likert scale survey assessing EI, EA, and perceptions of DWT. The findings highlight several key conclusions. First, there is a significant positive relationship between EI and EA, indicating that emotionally intelligent employees are better at adapting to digital workplace changes. Second, EI significantly influences the success of DWT, suggesting that emotionally intelligent employees are more proficient in adopting digital tools and technologies. Third, effective digital transformation initiatives lead to improved employee adaptability. Finally, mediation analysis shows that DWT significantly mediates the relationship between EI and EA. The insights support organizational and HR strategies in evaluating digital workplace initiatives and change management. By fostering EI and supporting digital transformations, organizations can enhance EA, improving overall performance and resilience.