This paper investigates how to enable undergraduate students' use of online video for coursework using a customised video retrieval system (VRS), in order to understand digital literacy with online video in practice. This study examines the key areas influencing the use of online video for assignments such as the learning value of video, strategies for its integration and the key features of online video systems. A key component of the integration process is video browsing and content retrieval which focuses on enabling users to locate and view relevant segments of video, using techniques such as content based analysis and video segmentation. This paper examines how students source, integrate, and reference online video for assignment work. Findings show that students display key elements of digital literacy with online video when the appropriate tools and strategies to complete tasks are provided. Students demonstrated the ability to successfully integrate online video into individual assignments. The work also presents a series of recommendations and considerations for enabling the use of online video in assignment work.