A week-long exploratory observational case study of two white middle class girls (4 years, 9 months of age) investigated how children incorporate reading and writing literacy skills and knowledge of literacy artifacts into their play activities. Also examined was the role these play activities have in the development of literacy. Data were collected through focused nonparticipant observations of children's preschool activities, parent observations, and informal discussions. Results indicated that each girl engaged in playful literacy activities in both pretend and nonpretend contexts. When new information about literacy artifacts was presented, the girls gradually incorporated parts of that information into their play. This new information was eventually consolidated into larger units of play behavior and then repeated several times. When play concerned familiar or known information, subjects voluntarily elaborated and extended that information into new contexts. Whether or not the girls incorporated new information or elaborated on known information seemed to be related to the saliency of the information and their current level of skill development. Preliminary data raised questions about the role of play in children's learning of literacy. (Author/BJD)