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This research intended to develop and validate a Covid-19 Literacy Scale (CLS). This study was conducted in two phases. In the first phase items were generated based on an extensive literature review, public advisory platforms, and public service messages related to Covid-19. After that these statements were submitted to a panel of experts for content and face validity. While in the second phase, a cross-sectional survey was conducted using students of three university from the province of Punjab, Pakistan for construct validity and reliability. An online questionnaire was administered among students with permission from the concerned authorities. A total of 369 responses received which were imported in SPSS for data analysis. The construct validity was assessed through exploratory factor analysis and the reliability of the instrument was determined using Cronbach alpha coefficient. The results indicated a 23-items scale structured into two dimensions, namely, ‘infection spread and symptoms’ (11 items) and ‘infection prevention and treatment’ (12 items), Each statement had loading strengths greater than .56 and the model explained 66.6% of the total variance. The values of reliability coefficient for overall scale (CA = .970) as well as for both sub-dimension such as ‘infection spread and symptoms’ (CA = .957) and ‘infection prevention and treatment (CA = .936) were great. The correlation coefficients of test retest ranged from 0.71 to .87 which also appeared at satisfactory level. Thus, the newly developed instrument appeared as a reliable and valid measure for Covid-19 literacy assessment. This research would make a worthwhile contribution to health literacy in general and Covid-19 literacy in particular as no such scale was available in the existing literature.