Preschool teachers are an essential part of the education system in the United Sates. The problem is that research and data about the development of literacy skills exist for kindergarten and upper grades, but there is minimal research on preschool teachers' perceptions on the development of literacy skills in a play-based learning environment. The purpose of this basic qualitative study, guided by Piaget's constructivist theory, was to explore the perceptions of preschool teachers from a Midwestern city about the best practices and strategies used to develop literacy skills in a play-based preschool setting. Ten preschool teachers who worked in a private or public childcare setting and had a minimum of 3 years of teaching were recruited by purposeful sampling to participate in semistructured interviews to collect data for analysis. The four themes that emerged were teachers play a critical role in the learning process, learning is developmental, learning is an "active" process, and importance of prior learning. The findings of this study may inform preschool educators and administrators with information about designing, planning, and implementing strategies that improve literacy instruction in a play-based learning environment. Recommendations for future study include additional qualitative studies with preschool teachers from other geographic areas to determine if differences exist across the United States. Quantitative studies would also provide information on what training preschool teachers need to be effective in a play-based learning classroom. Improving the understanding of teaching literacy may improve children's learning and increase opportunities throughout their lifetime, which can contribute to positive social change. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]