This study examined the impact of a supplemental summer literacy program and the mediating effects of the home literacy environment on the language and literacy outcomes of a group of children (n=47) who were developmentally delayed due to gestational cocaine exposure and corresponding high risk environmental factors. Participating children were exposed to an intensive book-reading intervention during the summer months over a 3-year period. Results indicated that literacy scores, as measured on the Book Reading Inventory (BRI) did improve for the children over the 3-year period; however, language scores as measured on the Reynell Developmental Language Scales (RDLS) had varying rate of change over time. Receptive language was significantly impacted by other variables such as attendance and race/ethnicity. Expressive language was significantly affected by other variables such as gestational age and attendance. Results also indicated that language outcomes for young children who were exposed to a literacy program were higher than those who did not participate; however, only receptive language yielded significance at the p.05 level. Activities in the home that support literacy and learning as measured on the Stony Brook Family Reading Survey (SBFRS) do indeed impact language and literacy outcomes for these children. (author abstract)