This research report presents the results from the project Connecting digital and analog literacy: The potential of the digital pencil for text creation in schools (DigiPen). Digital pencils are used for writing, drawing, and pointing on tablet or laptop screens. So far, they have not been used to any larger extent in Swedish schools. Two studies of uses of digital pencils in Swedish compulsory schools are presented. One was carried out in a fourth-grade class and one in an eighth-grade class. The report describes the potentials of digital pencils as tools in schools for writing by hand, drawing, and thinking, as well as for performing tasks other than those that are possible with analog pencils. A number of detailed recommendations are presented, based on the empirical findings of the studies. The recommendations are directed toward teachers, teacher students, school management, and educational policymakers, as well as representatives of the hardware and software industry.