The impact of financial literacy on financial inclusion has become a critical area of study, as access to financial services is vital for economic development and poverty reduction. Financial literacy equips individuals with the knowledge and skills necessary to make informed financial decisions, thereby promoting their ability to engage with formal financial systems. This paper explores the role of financial literacy in enhancing financial inclusion, examining the barriers that hinder access to financial services, such as limited awareness, lack of trust, and socioeconomic factors. It identifies the challenges faced by individuals in low-income and underserved communities, who are often excluded from mainstream financial systems due to insufficient financial knowledge. Additionally, the paper reviews various solutions to improve financial literacy, including educational programs, digital financial tools, and policy interventions aimed at fostering greater financial inclusion. By addressing the challenges and implementing effective strategies, financial literacy can become a transformative tool in bridging the gap to financial inclusion, ultimately contributing to more equitable economic growth.