This article reports an analysis of fifth-graders' comprehension strategy use, as it occurred within peer-led literature discussion groups, and the influence of such strategy use on students' post-discussion gains in story comprehension. Data collection occurred across nine weeks. Data sources included transcripts of discussions, transcripts of pre- and post-discussion retellings of stories, and field notes. The analysis revealed (a) the most commonly employed strategies during discussions were questioning, evaluating, and interpreting; (b) there were no differences in the general patterns of strategy employment during discussions among students with different reading abilities; (c) the quality of students' strategic employment varied; and (d) the specific content of better reading students' strategic contributions during discussions influenced group members' post-discussion comprehension more than those of less able readers. (Contains 2 figures and 9 tables.)