The underrepresentation of women and the perpetuation of gender stereotypes in children's literature has long been a concern. This study examined the portrayal of women in children's picture books and the potential of interactive read-alouds to promote gender equity in early childhood education, with the aim of shedding light on gender inequality. This study used critical discourse analysis, theoretically informed by Rosenblatt's transactional theory and gender schema theory, to analyse 19 books and interactive read-aloud sessions between preservice teachers and children in six preschools. The results showed that books on women's inequality are discussed in three categories: the absence of female characters, gendered discourse, and the perpetuation of traditional women/maternal roles. Using examples from children's interactions, this study highlights the need for critical thinking about gender stereotypes and promoting gender equity in early childhood education. This study contributes to the literature on gender inequality in children's literature and provides practical implications for early childhood educators by emphasizing their critical role in promoting gender equity in children's learning and development.