The aim of the study was to explore the effect of Readers Theater on improving English reading prosody with L2 learners. The process of how reading prosody is improved through Readers Theater was examined. Sixty EFL undergraduate students, non-English majors, participated in this 6-week study. Two cycles of Readers Theater were implemented. Using pre- and post-tests, reading prosody was measured by an oral reading prosody scoring rubric, which focused on phrasing, intonation, and volume. Results indicated that reading prosody received significant gains after the treatment. Repeated readings, group dynamics, and internalization were qualitatively thematized to shed light on the process of reading prosody improvement through Readers Theater. The implications of this study are also discussed.