This article, a literature review of current trends in bi-literacy development and bilingual education examines published research dedicated to exploring the literacy strengths in the primary language that immigrant children bring to the classroom, and the potential of these children for becoming bilingual and bi-literate. The focus of the review is on research concentrated on school children who are developing literacy in two languages or have become literate in Spanish before starting school in an American classroom. The article identifies gaps in the literature and areas that deserve further research.