The document is comprised of the Early Language and Literacy Classroom Observation (ELLCO) Toolkit, a field-tested observation packet to examine literacy and language practices and materials in prekindergarten through third grade classrooms, and a user's guide providing technical information and instructions for administration and scoring the toolkit. The ELLCO toolkit is comprised of three parts: (1) a literacy environment checklist to familiarize observers with the classroom's layout and contents; (2) a classroom observation and teacher interview, examining general classroom environment and language, literacy, and curriculum; and (3) a literacy activities rating scale, recording literacy behaviors related to book reading and writing. The user's guide provides an introduction to using ELLCO for various purposes, step-by-step instructions for each of the toolkit's three parts, a narrative describing how one teacher sparked a young boy's interest in literacy and exploring how other teachers can apply key literacy concepts with their students. A technical appendix provides in-depth information on the research behind ELLCO and its psychometric properties. (The user's guide contains 55 references.) (KB)