This paper discusses findings from the Danish contribution to the EASE project, a European research project running from 2008 to 2010 on early literacy in relation to the transition from childcare to school. It explores a holistic inclusive approach to early literacy that resists a narrow accountability-oriented Danish policy (mirroring international trends). The paper draws on Brostrom's (2006a, 2006b, 2008, 2009) re-conceptualization of early childhood education and care (ECEC), which perceives care, upbringing and teaching as a unified whole, challenging both childcare services and schools. The paper also draws on Gee's (2001, 2003, 2004, 2008) sociocultural approach to literacy, and Honneth's (2003, 2006) concept of recognition. Emphasizing participation and recognition as key elements, it claims that stakeholders in early literacy must pay attention to how diverse early literacy opportunities empower children, especially when these opportunities are employed in a project-based learning environment in which each child is able to contribute to shared literacy events.