Lessons directed toward the development of literary and interpretive skills in gifted children in grades one through three are described in this guide. The guide contains an introductory session and ten lessons designed to help children learn about three elements of plot (story line, buildup, and theme), the roles played by story characters, story mood and tone, elements of suspense and surprise, figurative and descriptive language, point of view, first-person and third-person stories, and mystery stories. The lessons include suggestions for discussion questions, activities, and recommended reading. The guide also suggests methods for helping students write original stories as a culminating project to the study of literature, learn to write simple book reviews, and evaluate the books they read. (GW)