The primary purpose of this study was to assess the use of young children's artwork in the assessment of reading abilities. The research method for the study was qualitative, and the design followed an interpretive approach. Subjects were 12 transitional-first grade students (a transitional-first grade allows a child with normal academic ability more time to develop the maturity for first grade) from an elementary school in Alabama. A portfolio for each child consisted of artwork and documentation of reading abilities recorded each month. Indicators for the stage of art development were based on the work of Lowenfeld and Brittain (1987). Findings are reported for the first 3 months. Five children were still in the preschematic level of art development, with some growth being demonstrated in the emergent reading level of each child. Two were in transition between the preschematic and schematic stages of art development as they moved into the third emergent reading level. Two remained constant in both artwork and emergent reading level. Two others had not moved into the third emergent reading level, but their artwork indicated that they were ready to make connections. One had moved into the third emergent reading level even though her artwork indicated that she was not ready to make connections. Findings suggest that children's artwork may offer insights into the development of literacy, and that it may be a tool for the assessment of reading level or ability. (Contains 5 tables and 10 references.) (SLD)