Illiteracy is a serious problem in the United States, and Hispanics have substantially higher rates of illiteracy than any other major population group: by the traditional measure of literacy, the completion of five years of schooling, 11.9 percent of Hispanics 25 years and older could be considered illiterate, compared to 1.8 percent of the non-Hispanic population in 1987. The following conclusions about Hispanic illiteracy are cause for serious concern: (1) illiteracy in English is not a problem unique to immigrants; (2) many Hispanics who are illiterate also face difficulties of limited-English proficiency--they cannot speak English fluently; (3) the public schools too often are not effectively developing literacy skills among Hispanics; (4) current non-school-based literacy programs are inadequate to meet the need for services among the general population and typically underserve Hispanics; (5) illiteracy forecloses Hispanic parents from becoming full partners in the education of their children; (6) illiteracy limits Hispanic participation in the labor force; (7) illiteracy limits Hispanic participation in national life; (8) community-based literacy programs are among the most effective methods of reaching Hispanics; and (9) the illiteracy problem among Hispanics requires immediate attention. Seven recommendations for addressing illiteracy among Hispanics are offered. Five figures illustrate the data. (BJV)