G. Robinson introduced the
group invariant known as the p-local rank to study Dade’s conjecture and Alperin’s
conjecture. It is known that, for a finite p-solvable group with trivial maximal normal
p-subgroup, the p-local rank is greater than or equal to the p-rank. Along those lines,
we study the p-local rank of finite simple groups, giving a group-theoretic
characterization of finite simple groups having p-local rank two. These results are also
necessary for the investigation of such conjectures for finite groups of p-local rank
two.