This study, which is part of a larger longitudinal ethnographic study of young deaf children, reports on deaf children's use of fingerspelling. The children observed were early signers using Swedish Sign Language (SSL) in communication with teachers and peers. This study centres on the functions of fingerspelling in the children's everyday activities from a sociocultural perspective. Two main functions are identified (Theme I) developing the manual alphabet through performing and experimenting with fingerspelling as an integrated part of using Sign Language, and (Theme II) using fingerspelling as an artefact and identity marker in play.