Multilingual dictionaries are among the most valuable documentary resources for low-resource and endangered languages, yet many remain available only as scans. For many decades, their digitization and conversion into a machine-readable format was nearly impossible due to language-specific scripts, complex multi-column layouts full of entries with abbreviations and cross-references. Recent vision-language models offer a promising solution, but it is unclear how well they preserve characters, markup, and process lexicographic structure. We introduce MUDIDI, a two-stage framework for multi-lingual dictionary digitization. Stage One evaluates the quality of character recognition and markup preservation; Stage Two focuses on dictionary entry segmentation with subsequent mapping into a machine-readable lexicographic schema, SIL's Multi-Dictionary Formatter. We also release a dataset that consists of human-annotated lexicographic entries collected from 30 public-domain dictionaries featuring diverse writing systems, language families, and formats. We benchmark OCR systems, general-purpose Large Language Models (LLMs), and Vision Language Models (VLMs) on the dataset, demonstrating superior performance of LLMs across most writing systems and languages in both stages, and provide practical guidelines on improving the results for more challenging scenarios. Finally, we show that supplementing additional information, such as dictionary introduction, to the LLMs can improve the quality of the digitized dictionary. Github: https://github.com/DavidSamuell/MUDIDI-Pipeline-for-Digitization-of-Multilingual-Dictionary/