Journal of Librarianship and Information Science, Ahead of Print. This study adopted an exploratory approach to investigate the nuances of AI literacy among Library and Information Science (LIS) students in South Asia namely Bangladesh, India and Pakistan. A total of 632 respondents from these countries participated in an online survey that explored their level of AI literacy and familiarity with AI tools and technologies, purposes of using AI tools, ethical perceptions and how AI-related contents were covered in LIS courses and programmes. The study results indicate that students are moderately familiar with AI tools, but the degree of their self-rated AI literacy ranges from basic to advanced. Students reported using AI tools for academic purposes, including information searching, summarising articles, generating ideas and writing academic papers. However, participant LIS students expressed concerns about the ethical usage of AI and Generative AI tools, particularly academic integrity and plagiarism in academic writing. The results underscore the need for more robust AI literacy education in South Asian LIS education programmes – and potentially globally – to deepen students’ understanding and critical engagement with AI tools and technologies. This would better equip them for emerging roles in AI-integrated library services, highlighting a key direction for curriculum development, training methodologies and policy initiatives within LIS education and library and information management profession.