The purposes of this naturalistic, descriptive study were to examine the stories that children in one first grade classroom told in a storytelling circle, how the children's knowledge, in-school experiences, and out-of-school experiences were reflected in their stories, and how the children used their knowledge and experiences as tools to make sense of the world through their stories. The study was designed as a naturalistic, descriptive study employing an interpretive approach to examining the children's oral stories. Nine first grade children in one classroom were grouped heterogeneously into three storytelling groups. Data collected from the three groups included a total of 80 story rounds, each of which included an oral story along with preceding and succeeding dialogue from other children and the researcher. The researcher employed participant observation and a discourse analytic method of inquiry to analyze the stories told by children in a storytelling circle. The children proved themselves to be active constructors and co-constructors of meaning who skillfully told their stories for the very authentic purposes of making sense for themselves and for others. The stories were structurally complex and interesting to tellers and listeners. The children flexibly coconstructed stories that included a wide variety of settings, episodes, and codas as well as complex plots that situated people, characters, objects, and actions across time and space in ways that suited the purposes of and were meaningful to the tellers and the listeners. The children also drew upon a wide range of everyday knowledge and experiences, especially from out of school, which they called upon as resources for the co-construction of the stories. They used language in flexible ways that appropriated combinations of genres which they were able to utilize effectively in ways that helped them to organize and relate their experiences through the stories. Listening to the children's stories proved to be an effective way to learn about the children's knowledge, rooted in their experiences both inside and outside of school. This approach broadens current conceptions of children as learners by focusing on their strengths and resources as starting points for teaching and learning. Nine story maps are attached in Appendices E, F, G, H, I, J, K, L, and M. [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.]