The 21st century has marked an unprecedented advancement of new media. New media has become so pervasive that it has penetrated into every aspect of our society. New media literacy plays an essential role for any citizen to participate fully in the 21st century society. Researchers have documented that literacy has evolved historically from classic literacy (reading-writing-understanding) to audiovisual literacy to digital literacy or information literacy and recently to new media literacy. A review of literature on media literacy reveals that there is a lack of thorough analysis of unique characteristics of new media and its impacts upon the notion of new media literacy. The purpose of the study is to unpack new media literacy and propose a framework for a systematic investigation of new media literacy.