Storytelling represents an aspect of children's general language competence. The characteristics of the home literacy environment, especially joint reading between parents and children, have a significant effect on children's storytelling. The purpose of this study was to explore the age differences in the storytelling of three- to six-year-old children. In addition, the goal was also to determine the effect of parental education, parents' knowledge of children's books, as an indirect measure of joint reading in the home environment, and child's gender on children's storytelling ability. The sample included 156 children aged three- to six-years-old and their parents. The children's storytelling competence was assessed using the "Little Glove Storytelling Test". The stories that the children told using a standard picture book were analyzed in terms of several criteria connected with the words in the story and the structure of the story (grammatical structure and contents). Parents' knowledge of children's book was assessed using a "Checklist of children's books". The results showed that the period between the ages of three and six is important for the development of children's storytelling; parental education and parents' knowledge of children's books have a significant effect on children's storytelling. In addition, specific important differences were established between boys' and girls' stories: the girls told stories using a greater number of words, whereas no major gender-related differences were determined with regard to the structure of the stories told. The results obtained were interpreted from the viewpoint of both developmental psychology and selected environmental factors. (Contains 3 tables.)