Young English learners (ELs) whose home language is Spanish continue to lag behind in several school readiness areas including language and literacy skills in spite of their strong social skills, which are positively related to language and literacy. The purpose of this article is to identify challenges that preschool Spanish speaking ELs face, explore theoretical underpinnings of context-based instructional models, and discuss implications for research, practice, and policy making. Based on sociocultural theory and social transactional theory, we propose a conceptual framework that consists of embedding a teacher-scaffolded instruction within reciprocal peer mediated interactions to promote preschool Spanish speaking ELs' English language and literacy skills for kindergarten readiness. Given the transactional nature of peer tutoring, we hypothesize that children receiving the scaffolded reciprocal peer tutoring will have increased social interaction. Additionally, we expect a mediating effect of children's social interaction on their language and literacy development.