Promoting the development of early literacy skills might prevent later reading achievement problems. This longitudinal study investigated rates of early literacy growth using Individual Growth and Development Indicators (IGDIs) for 69 preschool children classified as belonging to 1 of 4 groups with or without risk for developing early literacy skills. Group differences were obtained for 3 IGDIs (Picture Naming, Rhyming, and Alliteration) and rate of growth over time varied across groups for Picture Naming and Rhyming. Percent time spent in various classroom situations, as measured by the Ecobehavioral System for the Complex Assessment of Preschool Environments (ESCAPE), was correlated with each child's rate of IGDI growth. Correlations between IGDI growth rates and ESCAPE variables suggest classroom areas in which interventions could be concentrated for specific groups of children. Implications for practice and future research are discussed.