Australia's culturally and linguistically diverse society is an important consideration in the role of adult literacy and numeracy in lifelong learning and socioeconomic well-being. A case study highlights the complexities diversity brings to development of language and literacy practices and challenges facing educators in developing a culturally inclusive vision for a literate Australia. Focus is on differences and similarities of adult literacy and basic education (ALBE) and English as a second language (ESL) and pedagogical implications of combining learners from English-speaking background (ESB) with learners with ESL needs in ALBE settings. Definitional issues have further blurred boundaries between ALBE and ESL since needs of both learner groups and pedagogical practices to meet them are similar. Focus group and individual interviews demonstrate practitioners' awareness of the importance of understanding the complex sociocultural, linguistic, educational, motivational, and individual factors that impact on learner needs. Research reveals that literacy learners from language backgrounds other than English have particular needs not necessarily addressed in ESL or ALBE classrooms. Views from the field emphasize concerns about the invisibility of learners from ESB with literacy needs. Further work is needed to integrate the best of ALBE theory and practice with insights of ESL theory and practice to meet needs of all learners. (Appendixes include 137 references and focus group questions, questionnaire and characteristics of adult and ESL learners.) (YLB)