This paper reviews the literature relative to the theory and practice of literature-based reading instruction, and seeks to bring clarity concerning the concept of literature-based reading instruction. The paper points out that from a theoretical point of view advocates of literature-based reading instruction draw upon the whole language philosophy, psycholinguistics, and cognitive psychology. It notes that proponents of literature-based reading instruction propose that reading should develop naturally and functionally. The paper concludes that instruction should be guided by the needs and interests of learners, beginning with real literature and meaningful print rather than with fragmented language or language constructed for instructional purposes. Although varied studies are reported that support a holistic literature-based approach to reading instruction, the paper suggests that more studies are needed relative to the implementation of literature-based reading programs. (Eighty-eight references are attached.) (PRA)