The purpose of this paper is to review the existing literature on the role of education in poverty alleviation, the poor’s access to education, and inter-generational poverty alleviation through education. Poverty alleviation is an important issue in developing countries, including India. The concept of poverty has been extended far beyond income poverty. Poverty is, nevertheless, still largely understood in monetary terms in the existing empirical examinations of the relationship between education and poverty. In the existing literature, it is largely found that the role of education in poverty alleviation should be understood in a specific context and time. At the same time, the quality and quantity of education a child can receive are also likely to affect a wide range of opportunities in the course of their life, and, worse still, such disparities reinforce the socio-economic status quo for future generations. When it comes to educating children, poverty associated with other disadvantages, such as caste, religion, gender and so on, as well as the schools in the community and surrounding communities, affects poor children’s schooling and retention. A hierarchical division of school, reflecting the socio-economic status of the family has intensifies over the years in India. In this regard, children in poor households may have difficulties in getting out of poverty.