This study addresses the increasing importance of integrating critical literacy in EFL reading classrooms, particularly in response to the demands of 21st-century education that require students to engage critically with diverse texts. Despite its recognized potential to promote higher-order thinking, the implementation of critical literacy in EFL contexts remains inconsistent, especially in relation to classroom practices and students’ experiences. This discrepancy indicates a gap between theoretical expectations and practical application. Therefore, this study aims to explore how critical literacy is implemented in EFL reading classrooms and how students perceive its role in developing reading comprehension. This study employed a descriptive qualitative design involving fifth-semester students in an English Education Department. Data were collected through classroom observations and semi-structured interviews, and analyzed using an interactive model comprising data reduction, data display, and conclusion drawing. The findings reveal that implementing critical literacy, guided by the Four Resources Model, facilitates students’ progression from basic decoding to the critical analysis of texts. Students demonstrated the ability to relate texts to personal experiences, interpret the purposes of texts, and express evaluative perspectives. Additionally, students reported positive perceptions, including increased critical thinking, engagement, and confidence, although challenges related to vocabulary limitations and time constraints persisted. In conclusion, this study highlights critical literacy as a transformative approach in EFL reading instruction, while emphasizing the need for linguistic scaffolding and interactive pedagogical strategies to optimize its implementation.