The purpose of this yearlong study was to examine literate identity development of first-grade students in a student-centered, literature-based classroom where meaning making was privileged over decoding skills. This cross-case analysis traced the identity trajectories of two case studies: one student with strong decoding skills (above grade level performance) and one student with emerging decoding skills (below grade level performance). Sociocultural theories provided a framework for the data collection and analysis with an understanding that meaning is co-constructed in situated contexts as children take up literacy practices to participate in identity negotiations. This study utilized a formative design with a pedagogical goal of developing positive literate identities. Discourse analysis was used to analyze and trace the identity trajectories of a strong and emerging decoder over the course of a year. Both students negotiated positive identities by taking up accepted classroom literacy practices. Similarities, differences, and implications for instruction are explored.