The concept of Physical Literacy (PL) is relatively new and aims to encourage lifelong physical activity. A study assessed the knowledge and application of PL among Physical Education (PE) teachers in the South-Central area of Chile. Twenty teachers participated, completing a validated 17-question survey. The study used descriptive methodology to evaluate the teachers' understanding of the PL concept. Additionally, thematic analysis (Braun and Clarke, 2006) was used to identify how this concept was applied in the classroom. The majority of the surveyed teachers work in urban areas, have less than five years of professional experience, and teach four or fewer courses per week. The results revealed that 90% of the teachers were unaware of the PL concept and often confused it with traditional Physical Education. They had difficulty identifying PL within the school curriculum, both in terms of development and assessment. In conclusion, the study found that the understanding of the PL concept among these teachers is limited, with a predominant focus on motor skills, while overlooking other essential aspects for comprehensive training in Physical Education.