Karaikal occupies a vital role in the literacy rate of this region. The Education Department has taken more steps to reduce the drop outs and to attain maximum literacy rate in this region. The Govt. of Puducherry has allotted a huge amount in each and every budget for the Education Department. With the result in this region a total of 20 Higher Secondary Schools, 24 Middle Schools, 43 High Schools are functioning. All Govt. institutions are following TamilNadu State Board syllabus and a few private institutions follow CBSE syllabus. One Navodaya Vidhyalaya is also functioning in this area. Also more number of private Schools are also functioning in this region.
As far as Higher Education concern, two Government Arts Colleges one for Women and one Co-education are functioning in this region and giving higher education to the students. The other Professional Colleges are One Agricultural and Research Institute(PAJANCOA & RI), Engineering College (PKIET), National Institute of Technology (NIT), B.Ed College, Pondicherry University PG Centre (Karaikal Campus), One Medical College (JIPMER-Karaikal campus), Government Polytech Colleges for men and women, ITIs etc. Apart from Government side, many Arts, Engineering, Medical colleges, Teacher Training Institutes, ITIs are also run by privators to cater the educational need of this district pupils.
With a view to increase the reading habit among the public one Central Library is at Karaikal and branch Libraries are also functioning in 18 Villages in and around Karaikal region which are controlled by the Art and Culture Department. District administration has arranged special training to prepare students for competitive examinations and entrance exams. It is an additional message that many students have gone to government jobs using this opportunity.