This study examined the benefits of read alouds and early childhood literacy development. Research was conducted in preschool classrooms that use whole group interactive read alouds, as part of the daily literacy instruction. Data was collected through observation, teacher and student questionnaires, and examination and analysis of student work samples, in response to the daily read-aloud. The findings show that interactive read-alouds are highly beneficial for early childhood literacy development resulting in increased engagement, strengthened reading and writing skills, and the students’ abilities to make connections. In order to promote student interaction during learning, teachers must motivate their students by creating authentic, purposeful, and engaging literacy experiences that involve the teacher and students engaging, communicating and collaborating with each other