The purpose of this action research project is to show that gains in literacy skills through implementation of guided reading practices at the preschool level, if successful, prove that guided reading instruction is a meaningful and purposeful practice in teaching literacy skills at the early childhood level. The researcher worked with 47 preschool children ages four and five. Participants attended a state-funded preschool program in an elementary school building. An alphabet literacy skills pre-test was given. A writing sample of the participant' s names, with no visual reference, was obtained. Throughout the weeks, students participated in lessons and activities that would normally take place in the preschool program, as well as guided reading lessons twice a week. Data was collected through weekly quantitative testing on letter identification and letter sounds, as well as a name-writing sample, with the majority of the literacy post-test (same as pre-test) given at the end of the project. The literacy pre- and post-tests were from the K-5 learning curriculum Handwriting Without Tears. The name assessment page was created by the researcher. The letter identification and letter sounds were assessed through the on line tool ESG I. Data collected over eight weeks showed improvement in lowercase letter identification with the use of Pre-A guided reading. Both the guided reading group' s performance and the control group' s performance on uppercase letter identification were very similar in comparison to each other in their progress. Pre-A guided reading groups showed improved skills in name writing and letter sound knowledge. Overall, Pre-A guided reading groups show success in three of the four focused literacy areas in this research study.