The use of portfolio assessment is a valuable tool for teachers to use with young children to better understand how young children develop and learn. An intentional data collection and documentation system becomes a very powerful assessment tool, one that is authentic and based on children's capabilities and strengths. Children, educators, parents, and administrators are able to see the collection of items that celebrates the child. This article will describe several aspects of the portfolio system including: what a portfolio is; it's purposes; how to create the portfolio; and, how to use the portfolio with families.