This review focuses on the inclusion criteria for the selection of studies in the National Early Literacy Panel report. It argues that the interpretation of early literacy is overly narrow and ignores the important role of background knowledge and conceptual development. To make this argument, it examines studies of comprehension in content areas and shows how domain-specific knowledge uniquely contributes to literacy learning. It suggests that code-based skills do not sufficiently account for early literacy development. Rather, content-rich settings in which skills are learned through meaningful activity help children acquire the broad array of knowledge, skills, and dispositions that build a foundation for literacy learning.