Eighty-six Hong Kong Chinese kindergarten children were pretested on the Preschool and Primary Chinese Literacy Scale (PPCLS) and the Peabody Picture Vocabulary Test - Third Edition (PPVT-III), and assigned randomly within schools to 1 of 3 conditions, dialogic reading, typical reading and control. After an 8-week intervention, the children were posttested. Results indicated a significant main group effect for performance on both the PPCLS and the PPVT-III, with children in the dialogic reading group benefiting significantly from the intervention. These results indicate that early literacy-related activities in the home have strong and direct effects on both children's literacy growth and language development in Chinese. The success of the dialogic reading technique in this study contributes to the goal of raising global literacy standards and educational achievement. [Copyright of Early Education & Development is the property of Lawrence Erlbaum Associates. Full article may be available at the publisher's website: http://dx.doi.org/10.1207/s15566935eed1402_6 ]