The need for improved reading levels of students in elementary school is consistently documented in the literature. As a partial solution, some authors posit that students who participate in literacy instruction in a classroom with gifted students may achieve higher advancement in reading ability. Guided by theories of social learning and development the purpose of present study was to test this proposition. The core research question examined the influence of gifted peers on the literacy development of regular education students in second grade classrooms. A reading level comparison between two types of second grade classrooms, those with only regular education students and those with both regular education and gifted students, was performed. The participating second grade classrooms were given literacy instruction on a daily basis through both a reader's workshop, in which students worked with assigned peer partners, and guided reading. A reading assessment was used to evaluate the reading levels of the participants at the beginning and end of the school year. Descriptive statistics were first used to partition students into gifted and non-gifted groups. An independent sample t test was used, and no significant differences in pre/post gain scores were observed. The results indicated that both groups achieved similar literacy gains, suggesting peer interaction may have had some impact on the regular education students. This conclusion aligns with studies that note the importance of peer interaction. This study promotes positive social changes by providing knowledge and information to improve literacy instruction. Social change is attained when students exit the school system with the confidence that they have successfully learned to apply literacy techniques to real world situations and can use those skills to contribute to society. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]