The purpose of this study was to describe the nature of reading instruction in a program using children's trade books instead of basal readers, and to identify patterns resulting in hypotheses regarding the nature of instruction. The study informs practitioners by providing descriptions of actual instruction, enabling readers to envision how reading instruction is accomplished using children's trade books, and it informs the research community by developing grounded theory concerning the nature of instruction in one literature-based reading program. The study can help bridge the polarization between traditionalists and whole language advocates through the descriptions of how traditionally accepted academic domains of reading instruction were accomplished. Also, it provides a model of a successful way to structure instructional time so that students spend more time actually reading, and it documents the social dimensions of instruction as important domain of reading instruction.