This paper reviews research conducted in the field of bilingual literacy from 1966 to June 1980. Citing numerous research works, it focuses on the contributions to the understanding of the development of English reading and writing skills by Hispanic pupils in the United States. Congress requires bilingual education programs to assist educationally disadvantaged, limited English proficiency (LEP) children. These programs are typically transition- or maintenance-oriented. Six research categories which affect literacy development are discussed: (1) instructional methodology, (2) interference and linguistic constructs, (3) psychological and social variables, (4) code breaking and initial reading, (5) writing, and (6) testing and evaluation. Based on the research cited, five generalizations are formed: (1) given adequate attention, LEP Hispanic children can attain a level of functional literacy adequate for monolingual English school programs; (2) the literacy development of children in bilingual programs stressing native language maintenance may vary but will equalize over time; (3) little is known about how literacy affects cognitive development; (4) little is known about how literacy skills in the native language are transferred to English language literacy development; and (5) research needs to be done on the written English language proficiency of LEP students. (JK)