This paper re-examines Lyotard's notion of the postmodern condition in terms of its relevance and significance for education. The first section of the paper examines the Wittgensteinian role that Lyotard ascribes to philosophy in the postmodern condition. The second section, following Lyotard's discursive turn, locates the problem of the legitimation of education and knowledge in relation to capitalism. The final section provides a review of both Lyotard's responses to his critics and his reappraisal of his own work.