The author describes the use of literature circles in a social studies methods course for elementary preservice teachers and analyzes their effectiveness in teaching powerful social studies ideas. Literature circles encourage students to take more of a leadership role in the classroom, expect their active involvement, and challenge them to think more deeply about social studies content within texts. Students can compare different perspectives on the same historical event, such as the encounter between Columbus and the Taino, and reasons for including and omitting important ideas. Students can also note similarities and differences among cultures and current and historical events through literature circle discussions. However, teachers must carefully select texts which focus on powerful social studies ideas, emphasize the goal of thoughtful discussions when introducing literature circles, and be ready to raise significant issues ignored in the literature circle discussions during follow-up class discussions. (Contains 1 figure.)