The purpose of this study was to investigate the effect of literature circles on the reading comprehension and attitudes toward reading of gifted students in an elementary school. Using a quasi-experimental design, this action research compared two groups of gifted fourth grade students in the reading programs. The experimental group included twenty gifted/high-achieving students that participated in weekly literature circles for four weeks. The control group had nineteen gifted students that received the traditional, skill-based reading instruction. Pre- and post-assessments in reading performance of both groups were taken to compare growth. A survey was also conducted at end of the intervention to examine participant attitudes toward literature circles versus skill-based reading. The results indicate that the literature-circle group showed positive attitudes towards reading and also slightly more progress in reading than the skill-based group. The findings of this study support the potential benefits of incorporating literature circles into reading instruction for gifted students in elementary schools.