Prototyping is an important part of any development activity since it supports communication and knowledge creation among the members of the developing organization. Although prototyping is well established in the development of physical products, less is known about its use and effect on digital service innovation and development. Since digital technologies today are embedded in almost every level of an organization, from its processes to its offerings, it can be argued that it is crucial for an organization to be able to handle not only digital aspects of prototyping, but also physical and digital aspects simultaneously. This study addresses this need by exploring the impact of digital technology on prototyping, answering the research question “How does digital technology affect the different elements of prototyping?” By taking a comprehensive view on prototypes, implications for development are analyzed and developed based on the complex nature and ontology of digital technology. The result encompasses a set of nine different propositions for digital prototyping which contributes to both academia and the work of practitioners.