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In a world where text is more accessible than ever, critical literacy skills are imperative for today’s learners. However, before children can become critically literate, their teachers must understand critical literacy. In this exploratory study, we examine the critical literacy performances of students in an online children’s literature course for pre-service and practicing teachers and school librarians. Students participated in virtual literature circles centered on children’s literature and were invited to discuss the books through a critical literacy lens. Their discussions were examined using qualitative content analysis and analyzed along four critical literacy dimensions. Findings suggest virtual literature circles promote critical literacy yet may be limited in their potential for deep engagement with children’s literature and real-world social issues.