This study examined the effectiveness of source-based inquiry learning in improving university students' historical literacy in a South Asian History course. Historical literacy was conceptualized through students' abilities in sourcing, contextualization, corroboration, and evidence-based historical argumentation. A quantitative quasi-experimental pretest-posttest control group design involved 58 fourth-semester history education students. The experimental group comprised 29 students who received source-based inquiry learning, while the control group received conventional instruction. Data were collected using a source-based historical literacy essay test and analyzed through descriptive statistics, an independent-samples t-test, analysis of covariance, and normalized gain analysis. The experimental group achieved a higher posttest mean than the control group (78.93 vs. 64.90) and a greater improvement (28.15 vs. 14.48 points). The between-group difference was statistically significant, t(56) = 6.79, p < 0.001. Analysis of covariance confirmed a significant treatment effect after controlling for pretest scores, F(1, 55) = 110.82, p < 0.001, with a large effect size (0.668). The experimental group obtained a moderate normalized gain of 0.58, compared with 0.30 in the control group, which lay at the lower boundary of the low category. Sourcing and contextualization showed the greatest improvement. Source-based inquiry learning effectively strengthens historical literacy and disciplinary reasoning. Its integration into university history education can support more analytical, contextual, critical, and evidence-centered learning. Keywords: source-based inquiry learning, historical literacy, history education, primary historical sources, historical thinking.
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