Early childhood is a precious period when children get their most rapid performance in terms of emotional, physical, cognitive, and language development. During this period, one of the major indications is how children use their mother tongue. In respect of environmental effects, stories have a crucial role. Interactive story reading is one of the most studied formats for increasing language learning in children. Many research studies have shown that children make significant gains in various areas of development through interactive story reading experiences. Parents can support their children's language development and thereby their children's literacy development by interactive story reading. Interactive story reading is developed by Whitehurst and others and it is a process that leads the children improve their analytical thinking, expressing themselves, problem solving skills and inquiring. Moving from this, in this chapter, the effects of interactive story reading on language development of children is discussed through research done in the area.