A literature review examined research on the acquisition of word identification and vocabulary understanding. One of its major themes was that children's understanding of words is best understood from the perspective of developing sensitivities to the English language. A second major theme is that acquisition of word identification skills and vocabulary knowledge centers on discovery of the regularity of the language. Both qualitative and quantitative studies were examined. The literature on word identification and vocabulary development stems from different theoretical and methodological orientations and so the studies need to be considered illustrative. Nevertheless, it appears that the patterns of findings support several important instructional implications. Instructional activities ought to take place in informal as well as formal settings, provide a broad rather than narrow focus, and engage children in a variety of activities. Instruction must also be carefully tuned to draw from and extend children's existing knowledge. (Author/SR)