This study investigates the factors causing low literacy levels among second-grade students at SDN 162/II Dusun Baru Sipin. The research involved five students identified as having low literacy levels, the second-grade homeroom teacher, and the school principal. Data was collected through observation and interviews and analyzed using an interactive approach. The findings reveal two main factors contributing to low literacy: internal and external factors. Internal factors include low student motivation, low intelligence, and low interest in learning. External factors include inadequate facilities and infrastructure, environmental factors, and teacher competency. The study highlights the importance of improving literacy skills in early childhood education, as it is essential for future academic success. The research also emphasizes the need for teachers to use innovative teaching methods and to collaborate with parents to enhance students' reading and writing abilities. Recommendations include implementing regular literacy activities, improving school facilities, and providing teacher training in digital literacy. The study concludes that both internal and external factors significantly impact students' literacy levels, and addressing these factors is crucial for improving literacy in elementary schools.This study investigates the factors causing low literacy levels among second-grade students at SDN 162/II Dusun Baru Sipin. The research involved five students identified as having low literacy levels, the second-grade homeroom teacher, and the school principal. Data was collected through observation and interviews and analyzed using an interactive approach. The findings reveal two main factors contributing to low literacy: internal and external factors. Internal factors include low student motivation, low intelligence, and low interest in learning. External factors include inadequate facilities and infrastructure, environmental factors, and teacher competency. The study highlights the importance of improving literacy skills in early childhood education, as it is essential for future academic success. The research also emphasizes the need for teachers to use innovative teaching methods and to collaborate with parents to enhance students' reading and writing abilities. Recommendations include implementing regular literacy activities, improving school facilities, and providing teacher training in digital literacy. The study concludes that both internal and external factors significantly impact students' literacy levels, and addressing these factors is crucial for improving literacy in elementary schools.