Mathematical literacy is a crucial competency that requires students to formulate, employ, and interpret mathematics in various contexts. However, Indonesian students’ mathematical literacy achievements in the PISA assessment are still relatively low. This research aims to analyze the stages in students’ mathematical literacy process in solving PISA problems on systems of linear equations in two variables (SPLDV). This research used a qualitative descriptive approach involving 40 eighth grade students at a junior high school in Semarang City. Data collected through mathematical literacy tests, observations, and in-depth interviews using triangulation. Data analysis through data reduction, data presentation, and inductive conclusion drawing. The research results show variation in student abilities at each stage of the mathematical literacy process. Some students were able to systematically go through all stages, from understanding the problem, formulating the problem, applying concepts and procedures, to interpreting and concluding the results. However, the others experienced difficulties, especially at the stage of formulating the mathematical problem into a mathematical model and interpreting the results in a real-world context. Common errors included a lack of thoroughness in algebraic operations, failing to verify the results first, and failing to relate the mathematical findings to the problem situation. The mathematical literacy process: understanding the problem, formulating a model, applying concepts and procedures, interpreting results, and drawing conclusions. The biggest challenges occur at the formulation and interpretation stages. This requires context based and experiential learning, as well as learning strategies that encourage mathematical representation, reasoning, and critical evaluation to improve students’ mathematical literacy.