Background. Physical literacy is vital for addressing children’s health issues such as childhood obesity, physical inactivity, and sedentary behavior. However, there is a lack of research on PL assessment in Pakistan. This study is aimed at translating and cross-culturally adapting the Canadian Assessment of Physical Literacy-2 (CAPL-2) tool and establishing its validity and reliability in the Pakistani population. Methods. The CAPL-2 was translated to Urdu employing the translation and back translation method. A cross-sectional study involving 350 school children (8-12 years) from Multan, South Punjab, evaluated the CAPL-2U version’s reliability. Results. Expert consensus and pilot testing successfully achieved translation, cross-cultural adaptation, face and content validity. The CAPL-2U demonstrated excellent reliability and internal consistency across the domains. Specifically, daily behavior domain had an internal consistency of α = 0.964 and test-retest reliability of ICC = 0.930. Knowledge and understanding domain showed internal consistency ranging from α = 0.906 to 0.986 and test-retest reliability of ICC = 0.827 to 0.986. The motivation and confidence domain had an internal consistency of α = 0.923 to 0.997 and test-retest reliability of ICC = 0.857 to 0.993. The correlation between test-retest results for knowledge and understanding and motivation and confidence domains was r = 0.318 to 0.973. However, two items in the motivation and confidence domain showed discrepancies in test-retest outcomes. Conclusion. The study confirms the successful translation and adaptation of the CAPL-2 questionnaire for use in Urdu and Pakistani contexts. The findings endorse the tool’s reliability and suitability for assessing physical literacy in Pakistan’s children aged 8-12.