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 North Carolina Rule of Evidence 801(c), hearsay is generally inadmissible unless it falls under one of the many exceptions outlined in Rules 803 and 804, or unless it is deemed non-hearsay under Rule 801(d). These exceptions 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 because they are not offered to prove the truth of the matter asserted, such as statements offered to show the effect on the listener or the declarant's state of mind. The North Carolina courts interpret and apply these rules to determine the admissibility of hearsay in legal proceedings.