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This study examines whether and how interactions and collaboration with peers in a course learning community developed digital literacies and "digital wisdom" of students. In addition, we explored how communication and collaboration skills helped students to cope with the individual sense of ownership while working on group learning outcomes. The analysis of students' reflections was conducted during four semesters of an MA course in education in a large university. Based on the findings we introduce the expanded model of digital literacies. The paper emphasize the importance of developing technical, cognitive and social aspects of digital literacies, in order to promote digital wisdom of students. The results can contribute to effective instructional design and adoption of innovative pedagogy in higher education.