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Though information about literacy development in Morocco can be often found in professional publications, little has been done in regard to the impact of the socio-cultural, economic, and political variables on the development of educational policy in that country. This study has historically examined the educational reform policy in the independent Kingdom of Morocco in order to see how the above variables have affected the implementation of most major policies that had taken place. It also examined the role of the indigenous Islamic traditional type of education; the role of Salafiyya movement in creating a unique type of nationalism; and the point of view of two major Islamic group leaders: Sheikh Abdessalam Yasin, and Idris Al-Kettani, about educational reforms in Morocco. The study focused on three major periods: the colonial period (1912-1956), along with General Lyautey's assimilation theory; the nationalist or independent period (1956-1970); and the modern period (after 1970 until the present time). Information related to each period was gathered and it included primary sources from Morocco, and on the educational reform policies, and the educational system, were found. Significant differences between the three periods related to the Islamic groups role and involvement in educational reforms were found. The conclusion was drawn that the creation of a fair balance between the modern, and the Islamic type of education in every aspect; the revival of the traditional Quranic schools; and the learning of other foreign languages at upper levels in schools is necessary for the development of the kingdom of Morocco.