21st century education requires students to have scientific literacy competencies to overcome problems in society in the globalization era. The low scientific literacy is closely related to students’ difficulties in work and energy topic. Solution is needed to improve scientific literacy by designing appropriate learning model. This study has a purpose to analyze students’ scientific literacy on work and energy through STEM-based 7E learning cycle with formative assessment. This study used embedded experimental mixed method design. The subjects were 27 of tenth grade students of Laboratory UM high school, Indonesia. Data were collected using essays of scientific literacy test with 0.657 reliability and interviews. Data were analyzed quantitatively using paired sample t-test, N-gain, and d-effect size. While the qualitative using data collection procedures, data reduction, coding, presentation, and building a conclusion. The results indicated STEM-based 7E learning cycle with formative assessment was able to increase significantly students’ scientific literacy in medium category. The results showed that majority of students at Conceptual Level which students are able to answer related with the main concept of kinetic and potential energy but but did not go beyond the concepts of scientific discipline. However, students have difficulties on indicator of creating and evaluating the experiments. For future studies, 9E Learning Cycle or aspects of ‘Art’ could be added in STEM to gain even higher students’ scientific literacy.