This paper argues that second language instruction that aims to foster speaking skills and natural spoken interaction should be based upon the grammar of the spoken language, and not on grammars that reflect written norms. Using evidence from a corpus of conversational English, this examination focuses on how four grammatical features that occur with significant frequency are dealt with in currently popular pedagogical grammars. These include: (1) ellipsis; (2) left dislocation; (3) reinforcement; and (4) indirect speech. The investigation shows that the treatment of these selected features varies from adequate to non-existent in the grammars surveyed. Although research in discourse analysis does offer some helpful insights into the usage of these features, teachers and learners usually have limited access to this research. It is argued that small amounts of actual conversational English can be used imaginatively within inductive and language awareness approaches in the classroom to increase awareness and knowledge of the grammar of conversation. (Contains 32 references.) (Author/MDM)