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The interstellar medium (ISM) is highly structured and multiphase, and our knowledge of it stems from multi-wavelength radiation dictated by ISM chemistry. Hydrodynamical simulations coupled with chemistry networks have been our primary tools for predicting these observables. However, interstellar dust, the catalyst of ISM chemistry, is commonly treated as a non-evolving species. In reality, dust is constantly created, destroyed, and reformed, with significant spatial variations in its abundance. In this talk, I will discuss recent progress in resolved galaxy-scale simulations of low-metallicity dwarf galaxies coupled with a dust-evolving chemistry network where dust evolution is followed explicitly rather than treated in a sub-grid fashion. I will demonstrate how dust evolution helps explain the observed CO luminosity at low metallicity, which has important implications for galaxies in the early universe observed by JWST. I will also discuss the survival of dust in galactic outflows and its role in the observed molecular outflows, whose origin remains a puzzle.