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OBJECTIVES The aim of conducting this study is to measure health literacy (HL) and to investigate the factors associated with inadequate HL in a sample of outpatient clinics attendees (i.e. patients and companions) at Ain Shams University (ASU) Hospitals. STUDY DESIGN It is a cross-sectional study. METHODS The study was conducted on 805 attendees of the outpatient clinics at El-Demerdash University Hospital of ASU Hospitals. The Arabic versions of the Swedish Functional Health Literacy Scale and the European Health Literacy Survey Questionnaire-short version-were used to assess HL. The level of HL and factors influencing it were analyzed using correlation and binary logistic regression tests. RESULTS It was found that 81% of the participants had limited comprehensive health literacy (CHL; 34.3% inadequate and 46.7% problematic), while only 18.9% had sufficient CHL. Regarding functional health literacy (FHL), it was found that 84% had limited FHL (50.6% inadequate and 33.4% problematic), while only 16.1% had sufficient FHL. Females were more likely to have inadequate FHL. On the other hand, males, individuals with low educational levels, and attendees identified as patients as well as participants with inadequate FHL were more likely to have inadequate CHL. CONCLUSION The majority of our study population has limited HL. Extensive research is warranted to explore the extent of the problem on multi-institutional and national levels and to investigate more explanatory factors.