This study employed an ethnographic methodology to explore the use of "literacy bags" (LBs) to promote parental involvement in Chinese children's literacy learning in the English language. It was conducted with a first-grade class consisting of 18 students and their parents in Taiwan. Data resources were obtained from teaching questionnaires, classroom observation, home visits, and parental interviews. Each LB contained an English language children's picture book and CD or audiotape, along with some extension activities. Students took an LB home every Friday and parents spent time reading and doing the activities with their children. The results of this study highlighted the way in which LBs encouraged, supported, and enriched book reading and literacy learning in families. This study also demonstrated that parents expanded their understanding of how a child develops a new language, and they were able to apply effective literacy strategies to engage and discuss books with their children. Reading activities promoted social interactions between parents and children, parents and teachers, and peer interactions. The project also influenced parental attitudes and perceptions of their children's English literacy development, viewing themselves as teachers of their own children. In addition, this study expanded the scope of the findings of Western scholars to include understandings of the cultures, languages, and families of East Asia. (Contains 1 figure.)