Abstract: The concept of physical literacy, proposed by Margaret Whitehead, has drawn extensive attention in contemporary research on physical education. However, its practical implementation faces challenges. This study aims to clarify the internal logic of the concept of physical literacy and analyze the difficulties encountered in its practical application, thereby elucidating the tension between theory and reality. The research finds that physical literacy is not a single "ability", but rather a foundational capability for individuals to engage with the world through physical activity, facilitating the development of a diverse range of abilities. Characterized by intricacy, physical literacy integrates every life experience as an indispensable constituent at any given moment. The inherent complexity and fundamental nature of physical literacy render its application in physical education less targeted, particularly regarding the cultivation of moral values, the consideration of competitive dynamics, the selection of pedagogical content, and the execution of effective assessment, all of which warrant more substantive guidance. Physical literacy emerges as a concept brimming with potential; nonetheless, the physical education circle in China should be careful of this concept in practice since numerous obstacles and challenges have not yet been solved.