This paper looks at computer technology's current and potential role in developing literacy in hearing impaired (HI) adults. First, the paper considers findings of adult literacy research including the national impact of illiteracy, functional literacy, communication and thinking skills, the whole language approach, the process approach to writing, and functional context instruction. Second, the specific literacy needs and skills of the HI population are reviewed. Considered are the need for improved literacy levels for HI adults, characteristics of HI adults, language development, American Sign Language and English as a Second Language, bilingual instruction, and benefits of literacy programs for HI adults. Third, the use of technology in adult literacy programs is discussed, covering the novelty of technology, advantages and disadvantages of using computer technology, development of computer technology for the hearing impaired, technology implementation in educational programming, and availability and development of computer software. Recommendations include: (1) further research and development applying findings in adult literacy to the special needs of the hearing-impaired population; (2) careful evaluation of the effectiveness of pilot projects; (3) teacher training and technical assistance in computer technology; and (4) communication with ongoing projects and organizations to share information. (Contains 68 references.) (DB)