They are traditionally places people go to borrow books, but public libraries also play a crucial role in community life, a Welsh assembly inquiry heard.
Library-goers said they promoted well-being, and provided internet access and a lifeline in many areas.
Despite visitor numbers growing by 11% over ten years, dozens of libraries face the axe under council cutbacks.
AMs called on councils to look at co-locating libraries with other services as a way of saving them from closure.
The report surveyed a range of organisations from national bodies to local groups associated with their own local library.
'Safe place'People in Wales were more likely to visit a library than people in England, and their visits were growing in number, according to the Society of Chief Librarians in Wales.
It said library visits rose by 11% in Wales between 2002-03 and 2011-12 from 13.25 million visits to 14.72 million, compared to a 5% fall in England over the same period from 323 million visits to 306 million.
An action group set up to save Pennard library on Gower said they were a "lifeline" for disadvantaged people, while parents in Blaenau Ffestiniog, Gwynedd, enjoyed the library's baby groups and story time sessions.
Computer and wi-fi access was also welcomed by many of the respondents, particularly in rural areas.
Libraries are said to be a lifeline for older people and those in rural areas Melanie Sheridan, group leader for Newport central library's Reading Aloud group, said it had been a great help for people with declining mental health.
"The weekly Shared Reading with clients in the first stages of dementia was an amazing experience," she said.
"The session brought a sense of togetherness to a group of people who were in danger of being socially isolated as a result of their developing condition."
One member of a reading group at Builth Wells library in Powys, said: "It's a safe place I can go where I'm always greeted by friendly, helpful, professional staff.
"Losing the building would be a detriment to our high street but losing that environment would be even worse."
The assembly's communities, equality and local government committee called on the Welsh government and local councils to do more to promote the full range of activities in libraries, and to look at collaboration, co-location and revenue raising schemes to save them from closure.
Libraries 'crucial' for local life
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