In an era of rapid change, uncertainty and complexity, individuals and societies must develop new capacities to engage with the possible. This article introduces Possibilities Literacy as the cluster of inter-related competencies that allow individuals and groups to understand, generate and ethically act on diverse possibilities across personal, social, and cultural contexts. Drawing from cognitive and sociocultural perspectives, we propose a distinctive five-dimensional framework – Perception, Crafting, Engagement, Stewardship, and Mindsets – each explored through three orientations: Constraints, Alternatives, and Agency. At each intersection, we identify key competencies such as reframing constraints, playful generation, co-creation, futures deliberation, and self-authorship. Together, these enable learners to recognize limitations as invitations, map emerging possibilities, act with resilience, and steward futures aligned with shared values. We offer a rubric to support the development and assessment of Possibilities Literacy across contexts and conclude by rethinking literacy itself not as content mastery but as the evolving capacity to navigate uncertainty and co-create shared spaces of possibility.