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In spite of the emphasis on the importance of social contexts on children’s literacy development, there is still a startling lack of knowledge about the role of peer relationships on preschool bilingual children’s literary practices. This qualitative case study explores how preschool bilingual children’s peer relationships/interactions influence their responses to literary texts. The findings suggest that, in order to create supportive literature environments, it is important for teachers to pay considerable attention to what bilingual students experience with peers, and how they think, feel, and interpret their different social experiences. With more engrossing narratives, this study will provide a deeper comprehension of the importance of social contexts for young bilingual children’s literacy development.