This article addresses some key criteria for educators as they choose CD-ROM storybooks for young children's literacy development. The article includes: (1) A review of the pertinent literature on the quality and appropriateness of CD-ROM storybooks for literacy development; (2) An evaluation questionnaire to guide teachers in selecting CD-ROM storybooks; and (3) A sample assessment of a CD-ROM storybook, according to the evaluation questionnaire. Recent reports point to the inconsistent potential of CD-ROM storybooks to support children's literacy development. Given the motivation to incorporate such computer-aided learning in the school, teachers need to become more skilled in evaluating and selecting appropriate e-books for supporting literacy development and educational goals. Much thought is needed in choosing e-books that use specialty electronic and interactive media while supporting children's understanding of the story and exploration of the text. (Contains 2 tables.)