This study investigated literacy practices in English language immersion schools in Taiwan through observations in three classrooms with 5-year-old children. The study explored the possibility of children s ability to develop skills in phonics, writing, and multimedia classes through the use of stories as an overarching theme. Through the intervention of a set of literacy activities in these classes, the research was aimed to illuminate implications, facts and findings surrounding language immersion instruction in early childhood education using qualitative methods. Findings revealed that certain instruction strategies can lead to extensive use of English. The preschoolers demonstrated a high level of engagement in English literacy. They demonstrated confidence in traditional literacy, and extreme adaptability and capability in working with the new concept of digital literacy by engaging in socially orientated multimedia activities such as typing and e-mailing. Even though the teaching styles of the teachers in the study differed, the combined research results demonstrated that it was indeed possible and desirable to implement literacy teaching in preschool classrooms.