The researchers addressed two questions: (1) Does maternal reading mediation and family home literacy environment (HLE) relate to childrenÕs emergent literacy (EL) level? and (2) Do the relationships among these variables differ as a function of socioeconomic strata (SES) level. A total of 94 5-6-year-old children, 47 from low SES (LSES) and 47 from high (HSES) families, and their mothers participated. Mother-child interactions while reading an unfamiliar book were videotaped and their verbal expressions were coded for extracting maternal mediation level. ChildrenÕs independent EL level was assessed prior to the interaction. Compared with the LSES group, HSES children showed higher EL levels and their homes had a richer literacy environment. Maternal mediation level differed by SES: LSES mothers paraphrased text more often; HSES mothersÕ higher mediation level included a discussion of the written system and making connections beyond the text. In the HSES group, maternal mediation level and HLE related to childrenÕs EL; no such relationships appeared in the LSES group. Results are discussed in terms of childrenÕs socio-economic background and their reading experiences. Implications for researchers and educational practices about the relationships between childrenÕs literacy development, SES, HLE, and parental mediation are discussed.