A child from birth shows interest in letters, signs in environment: on billboards, milk inscriptions, on picture books etc. A predictions for successful reading and writing development are prior skills that a child needs to develop. Child is assisted by parents and preschool teachers by providing a stimulating environment. Parents have to be good speaking models and provide a child, with various stimulating situations and not fetter a child in attemps to do something on their own, but encourage a child constantly. It is important for parents to read a child, talk and read him ,as well as play with him. Despite of parents, in kindergarten, preschool teachers need to encourage children to read and write, providing their surroundings with written materials and offering them plenty activities for the development of reading and writing skills. The children themselves are motivated to learn, we are here to encourage them, give them certain game and they will learn in spontaneuos and fun way. While, for example, children are writing a list of purchases and acting parents, they are actually learning to write. It is extremely important to include child in the reading, for example, we are talking about first page and showing the first page or asking questions about the book. Early literacy affects the further course of education; if adults do not encourage the development of reading and writing skills, there is big possibility that child will have problem in the future education. This paper focuses on the phenomenon of literacy and on the abilitiy of encouraging early literacy in preschool.