As youth workers increasingly offer support and guidance within digital environments, the question arises as to what impact this support has on the (online) lives of young people. This paper explores the contribution of youth work practice in the online lifeworld on young peoples’ development, building on previous studies concerning youth work outcomes and the developmental needs of young people. A qualitative research design was employed, including digital diaries of youth workers and semi-structured interviews with both young people (N = 37) and youth workers (N = 25). The findings highlight the role of youth work in helping young people navigate social media; develop new skills, talents, and social connections; and increase awareness of online risks. Youth workers also support young people in coping with negative online experiences, including loneliness and mental health challenges. The contribution of online youth work is less visible in certain aspects of developmental needs, namely online safety and privacy, self-image, and assessing online information. This paper concludes by emphasizing the need for further research into the long-term impact of youth work in the online lifeworld, particularly in light of rapid technological developments, the growing influence of artificial intelligence, and the increasing involvement of youth in digital forms of crime. The findings described in this study can form a base for future research to better understand the impact of these emerging issues on youth development and youth work practice, as well as to develop appropriate interventions.