The purpose of this study is to find out literacy environment for young children and to examine young children's reading ability. For this study the 59 children of 3, 4, 5-year-old were selected. The subjects were observed and interviewed individually at their own homes to find out the literacy environment and environmental print awareness. The findings of the study are as follows: 1. Young children are exposed to very various environmental print. 2. When environmental print is embedded in context, 68.6% of the 3-year-olds, 80.0% of the 4-year-olds and over 82.5% of the 5-year-olds can read it. 3. When environmental print is not embedded in context, 16.7% of the 3-year-olds, 21.4% of the 4-year-olds and over 47.0% of the 5-year-olds can read it.