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Research has suggested that providers of health services must be aware of health literacy tools as elements of communication with patients. Poor health literacy is an epidemic that affects quality of care. The purpose of this study was to examine the functional health literacy of associate-degree nursing (ADN) students and their awareness of patients' health literacy needs. This correlational study was designed to examine the relationship between the functional health literacy of ADN students and their awareness of their patients' health literacy needs using the asset model and the health literate care model. A convenience sample of 131 ADN students in their last 2 semesters of nursing school completed the Test of Functional Health Literacy in Adults (TOFHLA) and the Knowledge and Skills Survey. Pearson correlation, linear regression, multivariate analysis of variance, and Spearman correlation were used to analyze the demographics of students, TOFHLA, and Knowledge and Skills Survey scores. The Pearson correlation indicated that the functional health literacy of ADN students and their awareness of the need to identify patients with low health literacy were statistically significant (p = .017). The results supported the need for improved training and support for students on the topic of health literacy along with opportunities for further research. The implication of social change directly relates the area of nursing education by further identifying associations between education and the application of health literacy, which leads to further discussion on organizational policy and curriculum changes. These types of analysis will lead to more patient-centered care and improved patient outcomes.