Catering for diversity within birth to 5-year-old settings continues to be an on-going concern for policy makers and educators worldwide. This research contributes to discussion on the value of children's literature in achieving international principles of diversity and, in particular, the Principles, Practice and Outcomes outlined in the Australian Early Years Learning Framework. The article considers the selection and use of children's literature related to diversity, as well as what influences these processes. Seventeen educators from five long day care centres located in or near the Perth metropolitan area participated in the study. Data were drawn from interviews and a book audit. The findings revealed educators had limited understandings of the role of literature in acknowledging and valuing diversity and rarely used it to promote the diversity-related outcomes of the EYLF. The key challenges which emerged from the findings concerned beliefs of educators, professional learning and the application of the EYLF in practice.