Literacy centers are widely used by teachers seen as being effective in promoting literacy (Pressley, Rankin, & Yokoi, 2000); yet little research has been completed on how or why they are effective. Based on the social cultural constructivist theory posited by Vygotsky (1978), and research theories of Dyson (1993), the peer dialogue at the intersection of the unofficial social world of children and the official school world were analyzed to determine how peer dialogue supported literacy learning. Finding indicated that 47 of the 79 first-grade indicators from the Ohio Academic Content Standards for English Language Arts were utilized and strengthened through peer dialogue. This research can add to classroom practice as teachers see the impact of peer dialogue at literacy centers in supporting both literacy skills and literate behaviors.