This book explores the questions that arise as a result of the increasing awareness in U.S. society about equality issues. The book suggests that it is vitally important that children be alerted to the ways in which literature may convey prejudice. It is not possible, and it may not even be desirable, to insulate children from any possible contamination by books that do not display a proper appreciation of the dignity of every person. Teachers, librarians, and parents need to recognize prejudice in literature and to use it when it exists to teach children how to recognize it. Recent work that aims to counter prejudice in literature is reviewed, and equality issues and stereotyping are discussed in older and more recent books, emphasizing ways children can be encouraged to develop an awareness of bias. The following chapters are included: (1) "Prejudice in Children's Books"; (2) "Children and Literature"; (3) "Have the 'Classics' Had Their Day?"; (4) "Prejudice and Children's Popular Fiction"; (5) "Anti-Sexist and Emancipatory Books"; (6) "'Race' and Ethnic Identity"; (7) "Literature, Language, and Culture"; (8) "Literature and Society: Age and Disability"; (9) "Equality and Information Books"; and (10) "Literature, Equality and the Classroom." Each chapter contains references related to literature cited, and a 91-item bibliography lists sources related to the analysis of children's literature. (Contains four tables and six figures.) (SLD)