The article deals with mathematical literacy in relation to mathematical knowledge and mathematical problems, and presents the Slovenian project NA-MA POTI, which aims to develop mathematical literacy at the national level, from kindergarten to secondary education. All of the topics treated represent starting points for our research, in which we were interested in how sixth-grade primary school students solve non-contextual and contextual problems involving the same mathematical content (in the contextual problems this content still needs to be recognised, whereas in the non-contextual problems it is obvious). The main guideline in the research was to discover the relationship between mathematical knowledge, which is the starting point for solving problems from mathematical literacy (contextual problems), and mathematical literacy. The empirical study was based on the descriptive, causal and non-experimental methods of pedagogical research. We used both quantitative and qualitative research based on the grounded theory method to process the data gathered from how the participants solved the problems. The results were quantitatively analysed in order to compare the success at solving problems from different perspectives. Analysis of the students’ success in solving the contextual and non-contextual tasks, as well as the strategies used, showed that the relationship between mathematical knowledge and mathematical literacy is complex: in most cases, students solve non-contextual tasks more successfully; in solving contextual tasks, students can use completely different strategies from those used in solving non-contextual tasks; and students who recognise the mathematical content in contextual tasks and apply mathematical knowledge and procedures are more successful in solving such tasks. Our research opens up new issues that need to be considered when developing mathematical literacy competencies: which contexts to choose, how to empower students to identify mathematical content in contextual problems, and how to systematically ensure – including through projects such as NA-MA POTI – that changes to the mathematics curriculum are introduced thoughtfully, with regard to which appropriate teacher training is crucial.