Examined were differences between 36 Tennessee kindergarten and first-grade teachers' us of student groupings and instructional time. Teachers were observed twice at the beginning of the school year and once again approximately 8 weeks later. Eight observers collected data using the Stallings Observation Instrument, a measure consisting of: (1) a 60-second classroom scan recording observations of 14 classroom variables; and (2) a 5-minute observation (FMI) of all interactions involving the teacher. Five FMIs were recorded during each class period, each preceded by a classroom scan. Results of two-dimensional analysis of variance with repeated measures indicated that statistically significant differences existed between grade levels in student gouping patterns. Additionally, first-grade teachers utilized small group instruction more extensively than did kindergarten teachers; the converse was true for instruction involving whole classes. No significant differences were found between kindergarten and first-grade teachers' use of instructional time. Teachers' mean scores on time use in both groups were very similar as were the mean scores of each category of interactive instruction. Implications for teacher education and inservice training are discussed. (RH)