Although caregiver narrative elaboration is seen as a critical dimension for children's development of narrative skills, research has yet to show a predictive relation between caregiver elaboration and child outcomes for low-income Latino children. The present study explored whether specific types of narrative elaboration were predicted by and predictive of Latino children's language and storytelling skills. Results showed that, whereas provision of new elaboration was negatively predictive of children's language skills, provision of embellished elaboration predicted more advanced language skills six months later. Moreover, caregivers whose children had more developed language and storytelling skills included fewer new elaborations, but more embellished elaborations. The findings highlight Latino caregivers' responsiveness and sensitivity to children's abilities and further our understanding of the nuanced ways in which narrative elaboration is used by Latino caregivers.