This study examines a gap in Library and Information Science (LIS) education in the Philippines: the limited integration of practical, community-based learning within traditional Information Literacy (IL) courses. Conventional IL instruction often falls short in fostering the critical thinking, civic engagement, and real-world application of knowledge essential for future information professionals. To address this gap, the research investigates the incorporation of service-learning (SL) into an undergraduate IL course within an LIS program and explores how it can effectively enhance IL instruction. The existing IL course was revised to include key SL components: academic integration, meaningful service, and structured reflection and 12 undergraduate students from a Philippine university participated in the redesigned course. Qualitative data, gathered through small group discussions and reflective journals, were thematically analysed, revealing significant student learning outcomes in academic, civic, and personal domains. Results indicate that SL significantly enriches the LIS IL course by enhancing critical thinking, encouraging reflective learning, and preparing students for socially responsible roles. This approach offers a powerful pedagogical model for LIS educators, moving beyond traditional methods to cultivate holistic student development and bridge the gap between theoretical knowledge and practical application. The study highlights the real-world impact of SL in equipping LIS graduates to address complex information needs within communities, underscoring the need for further research into its broader applicability and long-term effects on LIS education.