Combining home-school literacy bags with preschool family literature circles provided a strong foundation for family involvement at home and school during this year-long Reading Partners project, and helped parents become essential partners in their children's literacy development. Using home-school literacy bags, children and parents learned how to combine expressive arts and emergent literacy strategies including alphabet recognition, phonemic and phonological awareness, and oral language fluency. State-of-the-art activities designed for each of the multiple intelligences met the needs of diverse students with many different learning styles and interests. As families participated in fall and spring school-based Festivals in which they shared the literacy bags in small group family literature circles, they demonstrated children's emerging literacy skills in a relaxed, yet highly engaging atmosphere. (author abstract)