This study investigates the impact of using an adaptive computer-assisted instruction (CAI) program in early childhood education. The Waterford Early Reading Program (ERP) is a CAI program that was assigned to kindergarten and first grade students in a school district in Texas for the 2015-2016 school year. The Texas Primary Reading Inventory (TPRI) assessment was administered to students at the beginning, middle, and end of the school year to assess reading skills across multiple strands. Analysis revealed statistically significant higher gains from beginning of year scores to end of year in scores for students that used the CAI program, indicating that adaptive computer-assisted instruction can improve early literacy skills more effectively than in-class instruction alone.