Literacy development was studied among 38 4-year-olds in Head Start on the Lummi Indian Reservation. Data consisted of observations during weekly visits throughout the school year, student writing samples, records of "pretend reading," responses to environmental print, and checklists assessing written language displays in the classrooms. Children's reading was assessed in terms of interest, stage of reading development, and level of print awareness. Children's writing was assessed in terms of interest, name representation, and stage of writing development. Level of engagement in reading and writing was high among 7-8 children, moderate among 14-16 children, and low or nonexistent among 13-16 children. Suggestions for promoting literacy involve encouraging children to participate in read-alouds; to explore books and stories; to make use of print in the classroom; and to explore writing through a writing table, small-group activities and functional uses of writing in the classroom. In addition, teachers can work together with parents as partners in their children's literacy development. Contains 75 references and extensive appendices of research materials and resources. (KS)