In this study, we examined story circles to understand how the small-group activity supports and shapes the storytelling of young students in multicultural, multilingual preschool classrooms. Through a representative example, we show how language development unfolds in the context of a transcultural and translanguaging dialogic exchange of stories. We describe features of increasing linguistic complexity present in students' storytelling as they established affinity-affirming connections over ideas, shared ways of languaging, and shared ways of storytelling. By examining changes in one student's storytelling in the context of a mixed-language story circle group, we offer insights into both language development and features of the language ecology in which such changes are supported.