Manufacturing firms are increasingly seeking to capture the potential of digitalization by transforming towards digital servitization. Yet, most manufacturers struggle to realize the value through digital servitization because it requires a sustained focus on forming ecosystem partnerships. Digital servitization research has long recognized the importance of ecosystem tranformation but much of the existing discussion on this interlink is fragmented and understudied. Therefore, this study’s purpose is to investigate how manufacturing firms engaged in digital servitization transform their ecosystems. To this end, we have examined the triggers, firm-level enablers, ecosystem phases and activities, and effects of ecosystem transformation in digital servitization. We provide a comprehensive review of the phases of ecosystem transformation including ecosystem formation, orchestration, and expansion as well as their associated activities. These findings have been consolidated into an integrative framework for ecosystem transformation and, based on this analysis, suggestions for future research are provided for digital servitization scholars.