Suggesting that the continuing rise in illiteracy is due to the decrease of simple forms of communication including conversation, stories, songs, and rhymes, this study investigated the possibility of reestablishing the connection between literacy and orality through education, especially with English-as-a-second-language (ESL) students and with developmentally impaired adults. A study explored the effectiveness of using storytelling in the forms of folktales, family stories, and personal experiences to facilitate literacy learning over a six-month period. In the first three months, a class of ESL students (all Chinese) was given assignments to tell personal experiences and family stories, usually about their mother country, in class. In the second three months, a reading class of developmentally impaired adults was instructed to tell fables. Results indicated that both groups: (1) gained confidence in speaking in a group; (2) attained greater mastery of the language; and (3) increased comprehension (exhibited by the stories retold), higher self-esteem, and more friendships through an increased ability to communicate personal values. (Contains 10 references.) (SC)