Despite the benefits of literacy for individuals, communities, and nations, a vast number of people remain illiterate. This publication will enable readers to understand the current literacy challenge and the United Nations Literacy Decade Plan of Action, to learn about the potential of using ICT as an effective literacy tools, and to appreciate the successful literacy projects in the Asia Pacific region, with application of ICT. Our understanding of literacy today has been expanded in the past 60 years from the ability to understand and communicate via written text, to functional literacy. Functional literacy refers to the ability of a person to engage in all those activities in which literacy is required. It was estimated that 771 million people aged 15 and above do not have the basic literacy skills. In 2002, The United Nations declared the decade between 2003 and 2012 the "United Nations Literacy Decade" and its aim is to bring literacy to all. ICT, mostly associated with high-tech devices and more conventional communications technologies, can be used as an effective tool for acquisition of literacy skills. In the Asia Pacific regions, a number of projects have used ICT effectively in promoting literacy, from radio and television programs in combination with printed materials for learning of local language, to the use of educational software and internet for dissemination of literacy information. Apart from learning, ICT is also widely used for teachers' professional development and community learning centers in the region. A lot had been done but there are still issues that require attention especially in the policy making and funding arena. To conclude, the usage of ICT as literacy tool is not necessarily all high-tech. Other criteria for success include understanding the users; making the contents locally appropriate; participation from the community; monitoring and evaluation; and connectivity. A list of related resources and web sites is included. (Contains 90 endnotes.) [This document was published by the UNESCO Asia and Pacific Regional Bureau for Education and was supported by Japanese Funds-in-Trust.]