This research highlights the crucial function of children's library services in advancing literacy and competency development. It underscores the urgency for libraries to evolve beyond conventional roles, advocating for a comprehensive literacy framework that integrates reading, writing, digital literacy, and critical thinking. Through qualitative analysis, the study outlines strategic measures for transforming libraries into vibrant, interactive spaces that nurture children's intellectual and social growth, positioning libraries as key facilitators of lifelong learning. It calls for a significant paradigm shift in children's library services to adeptly address emerging educational demands, emphasizing innovation and inclusivity in service design.