This article describes a mixed-methods study that examines the effects of literature circles (peer-led small group discussion of an assigned reading) on the reading achievement of college students taking developmental reading courses. The researcher-developed intervention was comprised of three connected activities (collaborative oral re-tell, short written response, and open discussion). Quantitative methods were used to measure the effectiveness of the intervention, and qualitative methods were used to analyze reading attitude/motivation and textual engagement. Thirty-eight college students in required reading courses participated in the five-week study, randomly assigned to either the treatment (participation in literature circle) or control (independent reading) condition. Comprehension was assessed through an oral re-tell of the novel, a researcher-developed book-specific assessment, and a pre-existing assessment on an unfamiliar passage. Quantitative analysis, which is the focus of this article, revealed that the students assigned to literature circles outperformed the control group students (significant main effect). While the qualitative findings are not discussed herein, analysis revealed that literature circles not only improve reading comprehension and depth of textual engagement but also provide an opportunity for discourse, collaboration, and social interaction. These findings suggest that literature circles would be an effective addition to a postsecondary developmental reading curriculum.