This paper provides a basic introduction to the genre-based literacy research undertaken over the past three decades by educators and functional linguists in Australia and their innovative contributions to literacy pedagogy and curriculum. It focuses on the concept of genre, its place within the model of language and context developed as systemic functional linguistics, and the implementation of this concept in learning to read and write. This approach to genre is illustrated with respect to the synthesis of a story genre built in steps through key choices for lexis, grammar, and discourse structure. (Contains 6 figures.)