The purpose of this study is to expand the traditional developmental conceptualization of spelling development into the social realm through microethnography. The overarching research question driving this study is: What are the social processes in literacy learning focusing on spelling development among peers in a first grade classroom? The subquestions include: (a) What is the cognitive and social cultural nature of first grade spelling development placed in the context of peer interaction?; and (b) What social language is used by first grade children to challenge and build upon each other during literacy activities concerning spelling? Videotaped observations of spelling instruction, field notes, and collected artifacts in a first grade classroom were collected over an academic year. The data was analyzed through the frameworks of emergent literacy, intertextuality, and social linguistics while using grounded theory with the iterative constant comparative method within an interpretivist paradigm. The results of this study demonstrate that the participants utilized and participated in meaningful social interactions using different forms of social talk when learning to spell. They also used a variety of text forms and genres making intertextual connections to build upon prior and current ideas. These findings show that spelling learning for young children should be understood as contextualized practices as part of their literacy development rather than decontextualized and isolated skills. These results imply a need for revision in spelling instruction to include how children learn in the social context. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]