A literature review was conducted to determine the nature and extent of the transfer of literacy learned in one situation to other situations and to identify ways of facilitating literacy transfer. The literature review focused on studies and analyses dealing with three areas: the definition and scope of intelligence, differences between experts and novices, and transfer theory development. Literacy ability was found to transfer to a very limited degree. The basic, automatic, and internalized aspects of reading, including moving eyes over a page and recognizing letter-sound relationships and very basic vocabulary, are most easily transferred. Transfer of mindful strategies (for example, summarizing, problem solving, studying, writing for multiple audiences, and editing) did not appear as automatic as transfer of the internalized aspects of reading did. Transfer of mindful strategies was, however, possible in cases involving transfer to tasks very similar to the original task mastered. In view of the limited nature of literacy transfer, it was recommended that educators place additional emphasis on the degree to which education helps learners change their literacy perceptions and lifestyles along with their current skills. (Contains 67 references.) (MN)