Background: This article is based on a study that aimed at finding out how pre-primary teachers integrate directed play into literacy teaching and learning. Play is a platform through which young children acquire language. Aim: This study uses an action research approach to understand how guided play benefits incidental reading and expands vocabulary growth in a Chinese Grade K classroom. Method: Data collection involved classroom observations, document analysis, informal and focus group discussions. Results: The results revealed the key benefits of play-based learning for sight word or incidental reading and vocabulary development. These are: (1) teacher oral and written language learning; (2) learners' classroom engagement is promoted; (3) learners were actively engaged in learning of orthographic features of words; (4) learners practised recognising the visual or grapho-phonemic structure of words; (5) teacher paced teaching; (6) teacher assesses miscues; and (7) keep record of word recognition skills. Conclusion: In the light of the evidence, it is recommended that the English Second Language (ESL) curriculum for pre-service teachers integrate curricular objectives that promote practising playful learning strategies to prepare teachers for practice.