The problem. The Taiwanese educational system incorporated English classes into the third grade curriculum beginning in 2005, making English language education more and more important in Taiwan. The goals for implementing this English educational policy in elementary schools are for students to be able to comprehend letters, phonology, and vocabulary from textbooks. This research aims to test whether instruction using rhyme picture books improves non-native English speakers' phonological awareness and reading ability significantly more than sightreading instruction. In addition, it tests whether there is a relationship between phonological awareness and reading. Method. This study involved two classes of third grade EFL students studying in the same private language school in Taiwan. Data analysis for this study involved both qualitative and quantitative methodologies. The quantitative data was collected from pre- and post-tests using the TOPA and the Cambridge Examination for Young Learners. The qualitative data came from the researcher's field notes and an interview with the control group teacher. The pre- and posttests for both groups were analyzed using dependent and independent t-tests on the means and gain scores. The field notes provided further insight into the use of rhyming picture books to develop phonological awareness and reading ability. Results. The results showed that the experimental group significantly improved their phonological awareness compared to the control group participants, who did not receive phonological awareness instruction. With respect to the relationship between phonological awareness, the results showed that there was a moderate correlation in post-tests of experimental group, but no corresponding correlation in the control group. The qualitative data showed that background knowledge had no significant difference in improving phonological awareness. However, using rhyme picture books for phonological awareness instruction helped students improve their phonological awareness. It also helped students to remember the words and sounds, and as a result, improve their reading ability. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]