Examining the impact of UMKM Go-Online and a knowledge-based dynamic capability on the adaptability of micro small medium enterprises (MSMEs) in Indonesia during the COVID-19 pandemic is the goal of this study. The pandemic has made it even harder for businesses to compete with one another due to pervasive social limitations. In fact, micro, small, and medium-sized businesses are some of the most significant factors driving Indonesia's economy. The government of Indonesia established the UMKM GoOnline program to assist micro, small, and medium-sized firms in relocating their operations online to circumvent this obstacle. However, not all actors in the MSMEs sector were familiar with using digital technologies. Through this study, quantitative research methods were employed, and a stratified random sample technique was used to collect data from 262 respondents in six Indonesian regions. SPSS and Smart PLS were applied for data analysis in this study. This research is limited since only 6 of 34 provinces in Indonesia were surveyed. MSMEs in Indonesia have established online operations using platforms such as Shopee, Tokopedia, Bukalapak, OLX, Blibli, and Google Business, according to the findings of this study. Grabfood, Gofood, Shopee Food, Traveloka Food, and Tokopedia are now the most popular online food markets in Indonesia. According to the results of the testing of the hypotheses, it shows that the impact of dynamic capability on digital transformation is the most significant, whereas the impact of knowledge resources on dynamic capacity is either small or may be ignored. When it comes to enhancing or developing an entrepreneur's ability to implement digital transformation for their business and ultimately create a resilient or agile business that can respond to the challenges of a dynamic and constantly shifting business environment, the dynamic capability variable is an important element.