Background: Adult literacy rates are an important indicator for describing the status of education and development within a country. The Lao national literacy survey was undertaken in 2001 to provide a reliable source of literacy data which in turn will determine if the country will reach Education For All (EFA) goals agreed upon at the World Education Forum in Dakar, April 2000. Purpose: To obtain reliable estimates of the proportion of literates among the entire population and among particular section of the population. To test for different literacy skills in the age group 15-59 and to compare and validate literacy data by using this method. To strengthen the know-how of the Ministry of Education in the planning and implementation of surveys and the maintenance of databases for literacy. And to provide reliable baseline information to guide the design of future literacy and non-formal education programmes in the context of EFA. Study Sample: A random selection of 5,976 persons from 8,100 households aged 15-19 were tested for literacy. Research Design: Statistical Survey. Data Collection and Analysis: The first stage of the survey used a household roster to investigate literacy as declared by the chief of the household and to collect detailed information on a range of variables likely to affect literacy. The second stage used a detailed questionnaire to conduct interviews with those aged 15-19 who had not completed secondary education and who were registered as literate in the household roster in the first stage of the survey. Using these criteria and random selection, 5,976 persons from 8,100 households were tested for literacy. Findings: The reported adult literacy rate is 68.7 percent with 77 percent for males and 60.9 percent for females. They indicate that there have been gains in adult literacy especially for females. Half the participants who were registered as literate had not attained basic literacy. Completion of primary education does not guarantee basic literacy. The key variables correlated with literacy are socioeconomic status of households, source of literacy, mother tongue (language spoken at home) and years since leaving school. Conclusion: Considering the sample size and absence of sample bias, the literacy estimates for national and provincial levels are statistically within acceptable confidence limits and margins of error. Further disaggregation below the provincial levels would increase the margin of error beyond acceptable limits. The following are appended: (1) Survey Questionnaire: Household Roster; (2) Survey Questionnaire: In-Depth Questionnaire; (3) Testing Literacy Skills on Small Sample of Primary Students; (4) List of LNLS Surveyors at National Level; and (5) List of LNLS Surveyors at Provincial Level. (Contains 38 tables and 14 figures.) [This document was published by the Department of Non-Formal Education, Lao PDR (People's Democratic Republic) Ministry of Education. It was prepared with technical and financial support from UNESCO Bangkok and financial support from UNICEF Vientiane.]