This guide was designed to help parents of preschool children utilize high quality children's literature to enhance communication between parents and children. The first section focuses on informal educational techniques parents can use with their preschool children. Specific topics examined include story reading and story telling, intellectual and social development through books, the importance of children's early experiences with books, artistic development through books, the importance of nursery rhymes and poetry, books that every child should own, and the role of books in the development of children's self concept. The second section presents many practical ways in which parents can encourage children's interest in books. Intellectual, social, and language activities and suggested books are listed in five age spans from birth to five years. The third section consists of an annotated bibliography of more than 500 children's books. Entries are arranged alphabetically in 29 areas of interest such as alphabet, beginning science, birthday and seasonal, health and doctor, medal winners, multicultural, new baby, cloth and board books, religious, song books and understanding oneself. Indicated for most books are suggested beginning ages of enjoyment for hearing the stories read by parents. (JMB)