Hearsay is a statement that (1) the person making it (the declarant) does not make while testifying at the current trial or hearing (in other words, the statement is made out of court); and (2) a party offers as evidence to prove the truth of the matter asserted in the statement.

Hearsay is generally not admissible as evidence—but there are many exceptions to hearsay, and statements that are non-hearsay. The law governing hearsay is usually located in the applicable state or federal rules of evidence, which are interpreted and applied by courts in court opinions or cases.

In North Carolina, hearsay is defined similarly to the federal standard, as a statement made outside of the current trial or hearing that is offered in evidence to prove the truth of the matter asserted. Under the North Carolina Rules of Evidence, specifically Rule 802, hearsay is not admissible unless it falls under one of the many exceptions outlined in the rules. These exceptions can include, but are not limited to, statements made under the belief of impending death, statements against interest, certain statements of personal or family history, and records of regularly conducted activity. Additionally, some statements are not considered hearsay at all, such as a declarant-witness's prior statement if the declarant testifies at the current trial or hearing and is subject to cross-examination about the prior statement. The North Carolina courts interpret and apply these rules to determine the admissibility of hearsay in each case.