Physical literacy is a progressive journey in which different components interact to facilitate participation and lifelong enjoyment of physical activity. The aim of this study was to investigate the relationship between physical activity level and physical literacy of children aged 8 to 12 years according to place of residence. The statistical population included students of Khorramabad city in which 90 people (30 people in the city center, 30 people in the suburbs, 30 people in the village) participated in this study as a sample by taking physical literacy tests and completing an international physical activity questionnaire. To analyze the data, Pearson correlation coefficient test and multivariate analysis of variance were used using SPSS software version 22. The results showed a positive and significant relationship between physical activity and physical literacy of the participants (P = 0.001). In terms of physical activity and level of physical literacy, children living in rural areas performed better than children living in the center and suburbs (P = 0.001), Under the knowledge and understanding infrastructure, children living in the center and suburbs scored higher than rural children, but in other components, the performance of rural children was better. In terms of gender, the difference between boys and girls in general physical literacy (P = 0.001), physical activity (P = 0.001), Physical competence (P = 0.004), daily behavior (P = 0.001), significant Boys performed better in these components, but there was no gender difference in motivation (P = 0.481) and knowledge and Understanding (P = 0.548).