An action research project described a program for improving reading readiness and language arts skills through phonemic awareness. The targeted population consisted of kindergarten students in a heterogeneous mix of upper middle class, middle class, working class, and low income families located in central Illinois. Data revealed that students entering first grade demonstrated a lack of transfer of letter and sound recognition. Analysis of probable cause data revealed that students reported a lack of skills related to the areas of reading readiness and language arts. These included: decoding, word building, segmenting, and categorizing, along with journal writing. Reviews of curricula content and instructional strategies revealed an over-emphasis on whole language and a lack of phonemic awareness. A review of solution strategies suggested by knowledgeable others, combined with an analysis of the problem setting, resulted in the selection of two major categories of intervention: implementation of phonemic awareness strategies and the use of hand signals to teach letters and letter sounds. These were used in conjunction with the already existing whole language program. Post intervention data indicated an increase in reading readiness and language arts skills. Students' phonemic awareness was enhanced through the researchers' implementation of phonetic tasks. These tasks, with the support of hand signals, brought about greater enthusiasm for the reading process. (Contains 31 references, and 8 tables and 5 graphs of data. Appendixes contain numerous inventories and survey instruments, hand signals, letters to parents, sample journals, and rhyming tasks.) (Author/RS)