This review of research on sexism in children's literature considers alternatives to the dilemma of whether to discard children's books that contain stereotypes or to risk bestowing those stereotypes on today's children. Among the issues considered are: the effect of sex-role stereotyping on a child's level of intellectual functioning; the relationship of children's literature to sex-role stereotypes; the either negative or one-dimensional portrayal of women in nursery rhymes, folk and fairy tales; and literature written up to and during the period of a resurgence of feminism. Suggestions include an emphasis on self-definition for today's child and literature-related activities that can enhance critical awareness of sex-role stereotyping. (AEA)