This article considers practitioners' beliefs and practice in relation to play in the literacy curriculum in two early years settings and the impact on the experiences of the children in these settings. Both settings were working with the Curriculum Guidance for the Foundation Stage (QCA/DfEE, 2000). One week was spent in each setting and narrative observations were undertaken on 5 target children in each setting. Key adults were interviewed about their beliefs about literacy and the impact of the Foundation Stage guidance on their practice. Interviews were analysed and related to literacy practices and provision for literacy play. Observations were analysed to illustrate the different experiences of children in the two settings. The findings have been related to current policy issues in the early years.