I would say that both are correct, and in some cases they're interchangeable, but in some cases they have different meanings. As Adam says, we usually use "in the street" to talk about something that is in the part of the street where cars drive. "Don't walk in the street, it's dangerous." "After the accident, there was a lot of glass in the street." (You could say "on" in these sentences, but "in" sounds more natural.) We use "on" to talk about something that is along the side of the street. Houses are "on" a street. Shops are "on" a street. When we talk about walking "on the street," we usually mean walking on the sidewalk or pavement beside the street. You can say "there are cars in the street" or "there are cars on the street." To me, "in" sounds better, but "on" doesn't sound wrong. I would say that "in" seems to refer to the /space/ that the cars are in (they're in the area that we consider to be "the street"), and "on" refers to the actual surface they're driving on (they're driving on top of the road pavement, in other words, the street). "I dropped my phone in the street" means you dropped your phone in the part of the street where cars drive, perhaps while you were crossing the street. "I dropped my phone on the street" could mean the same thing (you dropped your phone on the street pavement), or it could mean that you dropped your phone while you were walking along the side of the street.

There is variation by country, age, education, and social group. I hesitate to call anyone wrong. In my experience (US/Canada), "on the street" and "in the street" are both common. "On" refers to general location ("the shop is on Main Street") and "in" refers to physically being in the middle ("some children playing in the street").

Both are correct. American English generally uses 'on the street', whereas British English can use both 'in the street' and 'on the street'. We tend to use 'in' more for narrower streets. American English is steadily taking over, particularly among younger people. So, if you want to choose the option which sounds right to most people, you should go for 'on'. But don't let anyone tell you that 'in' is wrong.

Hi there, In English we would always say 'on the street' for example, 'I live on this street' or ' There are lots of shops on that street', 'on the street where I live, there is a school'. I hope this helps :)

Generally speaking "in the street" refers to you standing in the middle of street, where the cars would be driving, so I'm guessing that people usually wouldn't be referring to this. "On the street" is the most commonly used in BOTH American and British English because it refers to the more commonly used meaning of being on the sidewalk/pavement along the street in question. So Su.Ki is wrong in saying that "in" is more common in British English and that it isn't wrong because it depends on the context.