Designed for use by teachers of mentally gifted children, this book is one of a group of curriculum materials prepared by the California State Department of Education for a project on the mentally gifted. The contents of this book on literature are divided into four chapters, each of which deals with some aspect of literature instruction in relation to the various characteristics of gifted children. These chapters focus on the purpose and principles of literature instruction, elements in the study of literature, elements of fictional narrative and poetry, and the development of skills and potential. An appendix lists authors and titles of 56 recommended books and titles of four recordings. A list of selected references is also included. (JM)