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Paper is based on a survey conducted to study the level of information literacy at M.D. S. D. Girls College, Ambala City using questionnaire method. The literacy levels of respondents (students) in information technology, the knowledge of students in using the tools of information technology and the areas where they lack in information literacy were assessed and the most preferred/popular sources of information at M.D. S. D. Girls College among the users were identified. Further, the key issues have been identified and suggestions are made on the methods of increasing the literacy levels of the users in information technology environment.