Digital transformation of higher education institutions has introduced changes in the depth and quality of human interactions that affect both interpersonal relationships and mental well-being. This paper investigates the impact of digitalization on interpersonal relationships and mental well-being within higher education institutions. By delving into Social Support Theory and Social Cognitive Theory, this study assesses the influence of technological advancement on social connections. Through a systematic literature review, this study synthesizes previous research on the benefits and challenges that digital transformation presents in building supportive social networks. Findings indicate that the utilization of new digital platforms and tools might enhance inclusivity, accessibility and flexibility, however, it also negatively affects the development of meaningful interpersonal relationships, which are crucial for maintaining mental well-being. The lack of such strong social bonds was found to be a source of isolation and decreased social cohesion. This study concludes the critical call for balancing digital and in-person interactions. To create a supportive smart university environment, institutions should provide designated digital literacy support and foster a culture that values and encourages meaningful social engagement. This will contribute to interpersonal growth and efficient collaboration and will assist institutions to build more connected academic communities that nurture interpersonal development and social competences, which are vital for cultivating mental well-being.