This research provides an analysis of Internet use and online literacy skill among seventh-grade students who were identified as having a high risk for school dropout. Participants (n = 1,025) included students from 12 middle schools in 9 school districts. Six of the schools were located in rural and urban districts in the Northeast United States (n = 718), and 6 schools were located in rural areas and smaller cities in the Southeast United States (n = 307). The researchers developed a survey and assessment instrument to determine frequency of Internet use both inside and outside school as well as questions that assessed students' ability to read and communicate in online contexts. Results indicated that the students in this study use the Internet outside school more frequently and more diversely than inside school. Additionally, students in this study showed limited skills pertaining to the use of the Internet for various literacy-based activities, including (a) searching for and locating information efficiently, (b) reading search engine results and website texts, (c) evaluating the currency, accuracy, and reliability of information, and (d) electronically communicating information to others. (Contains 5 tables.)