Defining readers theatre as a technique for enhancing students' appreciation of literature and spoken language by dramatizing literary works in classroom settings, this booklet explains the basic principles of that form and offers exercises for applying those principles. The booklet notes that while the exercises are intended primarily for secondary school or college students, their underlying theoretical principles are valid for all instructional levels. The first section of the booklet provides a rationale for using readers theatre in the classroom and discusses its conventions, techniques for selecting appropriate literature to be dramatized, ways of staging the literature, and scripting of the literature. The second section provides 19 specific readers theatre exercises. (FL)