Critical literacy within Life-Based Learning (LBL) serves as a transformative educational approach that empowers students to engage critically with texts, media, and societal narratives, examining the ideologies, power dynamics, and cultural contexts embedded within them. This chapter examines the role of critical literacy in LBL, highlighting its significance in enabling students to understand and critically engage with the broader social structures that shape their lives. It discusses the expansion of critical literacy beyond traditional reading and writing to include digital and media literacy, driven by the technological advancements of the twenty-first century. The integration of technology in education facilitates new forms of content creation and analysis, enabling students to engage with and deconstruct media actively. The chapter also highlights how LBL fosters real-world application of critical literacy through projects that tackle local and global issues, such as environmental sustainability, social justice, and media representation. Through activities like media analysis, community research, and role-playing, students are encouraged to explore multiple perspectives and develop an understanding of power and equity. The chapter concludes with the assertion that critical literacy within LBL not only prepares students to analyze and critique information but also empowers them to become active, informed citizens capable of addressing complex societal challenges.