Gross stereotypes, subtle distortions, and omissions in references to ethnic groups in children's literature play a direct part in forming children's attitudes at an early age. One of the requirements for elementary education teacher certification at Penn State University is a course in children's literature with an emphasis on guiding students into a discovery (via content analysis) of the racism and sexism which exists in children's literature. Students are made aware of stereotypes of the "savage" Indian, the all brawn, no brains portrait of John Henry, the author-created stereotypical dialects, the subtle distortions of inherent ability, suggestions of white supremacy, the mockery of other cultural characteristics, distortions of historical realities, and derogatory words. Sexism in children's literature can be observed in the same forms: gross stereotypes, subtle distortions, and omissions. It is hoped that prospective teachers, through their own education and through their knowledge of teaching critical reading to children, can effect the needed change in children's literature. (HOD)