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This study highlights the critical need to enhance media literacy among youth in Shimla, Himachal Pradesh, where young individuals increasingly engage with diverse digital platforms. Shimla is the capital of Himachal Pradesh, is a well-known hill city famous for its cool climate, scenic beauty and colonial architecture. Once the summer capital of British India, Shimla now attracts visitors for both its natural charm and historical significance. The findings reveal a moderate level of media literacy overall, with notable gaps between urban and rural youth. Urban participants and those with education in humanities or journalism show stronger skills in analyzing and evaluating media. In contrast, rural youth often lack access to varied media sources and the critical tools to assess them. Only 37% of respondents could reliably distinguish between true and false information, despite high digital engagement. These results highlight the urgent need for educational reforms. Integrating media literacy into the curriculum, especially in rural schools and colleges, can help bridge both digital and analytical divides. Community awareness campaigns and specialized teacher training in media pedagogy are also essential to build critical thinking skills among youth. By examining the media habits and evaluative abilities of young people in Shimla, this study offers valuable insights for educators, policymakers and organizations committed to fostering a more informed and responsible generation of media users. In an age of digital influence, media literacy is not just important it is essential.