Solorzano and Yosso (2002) defined counter-storytelling as "a method of telling the stories of those people whose experiences are not often told (i.e., those on the margins of society). The counter-story is also a tool for exposing, analyzing, and challenging the majoritarian stories of racial privilege" (p. 32). This article seeks to explore how community-based institutions can serve as contexts for the development of critical literacy frameworks among youth. The authors argue that community-based institutions may use counter-storytelling practices as a way to challenge inequalities in participants' social worlds and to enact social change. Using examples from research conducted by the authors in a Puerto Rican community, they elaborate ways that schools can serve as counter-storytelling institutions that encourage students to critically examine society. Implications for practice are discussed.