As they are usually chosen by adults, children's picture books offer important insights into contemporary attitudes and values. They subsequently drive the social and academic development of young children, thereby playing a key role in their ethical socialisation and education. This article will explore the role of children's literature in this process by analysing a range of Australian children's picture books that deal with First Nations issues. The books were identified in a survey administered by the State Library of New South Wales' (NSW) public library service which identified 62 books that explored diversity. Twenty-five of the books were assessed as having Indigenous characters. This article will explore the approach adopted in each of these picture books by using Rudine Sims' three categories--Social Conscience, Melting Pot, and Culturally Conscious. By doing so, the article will assess the nature of childhood literature's engagement with Indigenous cultures, contexts, and issues.