The use of literature circles has been discussed in a variety of academic journals, conference papers, and workshops. Teachers at all grade levels use literature circles as a vehicle through which students learn to: think critically about literature; express their thoughts in oral and written forms; and better enjoy their literacy experiences. This digest aims to introduce some procedures for implementing literature circles and to review some recent findings regarding the benefits of literature circles on students' learning. In discussing the procedure for implementing literature circles, the digest considers reading material selection, community building, the number of students in each circle, preparation for discussion, and sharing and discussion. The digest also focuses on benefits of literature circles which some students have identified, including stronger reader-text relationships; improved classroom climate; enhanced degrees of gender equity and understanding; and a learning environment more conducive to the needs and abilities of English language users. (Contains 12 references.) (NKA)