This article explores the extent to which and how non-formal education (NFE) contributes to the development of a more diversified basic education system and thus to the achievement of EFA. It outlines the current nature of NFE, the frameworks provided by the EFA movement, and the evolution of reflection, policies and practices in NFE in relation to basic education as a whole. Based on significant developments in various countries across the South, the article also discusses some key challenges that ministries of education and their partners need to face in moving towards relevant and equitable diversity in education. The article posits that, despite the many problems faced by NFE, there is justification for building on its experiences and integrating these within a larger policy and systems framework that responds more effectively to needs and circumstances of children and young people.